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Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of

Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place.

You are preparing in your finance class, and youve been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded:

Description of Transaction

Type of Market

A student sells his old computer at a computer hardware store and gets $150 for it. He uses this cash to buy computer accessories.

Description of Transaction

Type of Market

A company agrees to buy copper from a seller in Chile at a certain price at the beginning of next year. Both companies sign a contract that locks in a future price at which the trade will take place.

Description of Transaction

Type of Market

Abbey allocates 80% of her portfolio for investments in short-term US Treasury bills.

Description of Transaction

Type of Market

Google filed its initial public offering worth $2.7 billion in 2004.

Source: CNNmoney.com, Apr. 30, 2004.

A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is .image text in transcribedimage text in transcribed

2. Types of financial markets Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place. You are preparing to take an exam in your finance class, and you've been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded: hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, he hedge fund is 2. Types of financial markets Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place. You are preparing to take an exam in your finance class, and you've been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded: hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, he hedge fund is

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