CAPITAL MARKET: ITS PARTICIPANTS AND INSTUMENTS
Capital market participants
The primary issuers of capital market securities are federal and local governments and corporations
The federal government issues long-term notes and bonds to 37 fund the national debt
Capital markets are for securities with an original maturity that is greater than one year
Bonds
Stocks
Mortgages
Junk Bonds. Speculative-grade bonds are often called junk bonds
Conversion.Some bonds can be converted into shares of common stock
Municipal Bonds are securities issued by local country and state governments
Treasury Bonds.The U.S. Treasury issued notes and bonds to finance the national debt
Types of Bonds
Long-term government notes and bonds
Municipal Bonds
Corporate Bonds
Bearer Bonds
Registered Bonds
Capital Market Traiding
Capital market trading occurs in either the primary market or the secondary market
Investment funds, corporations and individual investors can all purchase securities offered in the primary market