Financial Markets: Chapter 1

Asset

Anything of value owned by a person or a firm

Financial Asset

Security

Money

Money Supply

Stocks

Dividend

Bond

Interest Rate

Coupons

Foreign Exchange

Securitization

Mortgage

Financial Intermediary

Commercial Bank

Collateral

Insurance Companies

Pension

Mutual Funds

Portfolio

Hedge Funds

Investment Banking

Underwriting

Primary Market

Secondary Market

Initial Public Offering (IPO)

Federal Reserve

Monetary Policy

Federal Funds Rate

Risk

Diversification

Risk Sharing

Liquidity

Information