Posts with keyword secondary-market→
What is a “bond”?
(This post is a part of the series on Basics of Finance and Investing.)
Like money market, a bond market is a debt instrument issued by both the US government and corporations to borrow fund from public. But there are two differences: a bond market has longer term maturity, and bond returns are not always fixed (and so it is not totally correct to categorize them as fixed-income securities).
Continue >>
What is a “money market”?
(This post is a part of the series on Basics of Finance and Investing.)
A money market, or “cash”, is a low-risk, short-term, liquid, debt type security. Reading from left to right, the italicized words mean – the risk of losing the principal (money you paid for the security) is low, it matures typically in a year or less, you can sell it quick, and corporations (and the government) issue these securities to borrow funds. Because of the low risk and fixed returns, a money market is an example of a fixed-income security. Following are the three major types of money markets.
Continue >>
What is a “market”?
(This post is a part of the series on Basics of Finance and Investing.)
In simple terms, a market is where buyers and sellers meet to exchange goods for money. This basic concept still works in the sophisticated world of finance, except that there are now four organizational levels depending on the nature and volume of transactions.
Continue >>
