Types of financial markets

There are a variety of criteria by which financial markets and their securities can be differentiated. For example, they can be segmented according to

the types and maturities of the securities traded, who receives the proceeds of the sale, and the mechanisms used to operate the markets.

Consider the following transactions, and indicate which of each category of markets best describes the transaction. Thus, select equity or debt,

primary or secondary$,$ and capital or money for each transaction.

Transaction

Houston Horticulture Company, a publicly$-$traded company, sells a

new issue of $4\mathrm{.}50\%$ twenty$-$year bonds.

Crystal called her broker to purchase ten of the $5\mathrm{.}25\%10-$year

Market

Market

bonds recently issued by the State of Texas.

Brian uses an online brokerage account to purchase $2,000$ shares

of Lancashire Railway Company at the current market price.