Question
I. Types of Financial Markets Physical assets vs. Financial assets Spot vs. Futures Money vs. Capital Primary vs. Secondary Public vs. Private Consider the following
I. Types of Financial Markets Physical assets vs. Financial assets
Spot vs. Futures
Money vs. Capital
Primary vs. Secondary
Public vs. Private
Consider the following 5 transactions: Place the letter for the appropriate market (or NA if not applicable) for each transaction:
1) Purchase of 300 shares of AT&T stock on the NYSE
Physical Asset (P) or Financial Asset (F) =
Spot (S) or Futures (F) =
Money (M) of Capital (C ) =
Primary (P) of Secondary (S) =
Public (P) or Private (V) =
2) Purchase a 90-day certificate of deposit from my local bank with $1000
Physical Asset (P) or Financial Asset (F) =
Spot (S) or Futures (F) =
Money (M) of Capital (C ) =
Primary (P) of Secondary (S) =
Public (P) or Private (V) =
3) Purchase 10 July soybean futures contracts on the Chicago Board of Trade
Physical Asset (P) or Financial Asset (F) =
Spot (S) or Futures (F) =
Money (M) of Capital (C ) =
Primary (P) of Secondary (S) =
Public (P) or Private (V) =
4) KTS does an initial public offering of stock today
Physical Asset (P) or Financial Asset (F) =
Spot (S) or Futures (F) =
Money (M) of Capital (C ) =
Primary (P) of Secondary (S) =
Public (P) or Private (V) =
5) Purchase of 100 bushels of corn from Stan the farmer
Physical Asset (P) or Financial Asset (F) =
Spot (S) or Futures (F) =
Money (M) of Capital (C ) =
Primary (P) of Secondary (S) =
Public (P) or Private (V) =
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