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Financial Markets - Coggle Diagram

- - - - 3 categories
        
        Weak-form efficiency
        
        recent or past price
        
        Semi strong-form efficiency
        
        financial analysis (insiders can profit on their own company’s stock)
        
        Strong-form efficiency
        
        pertinent information
- - - - mature in 1 year or less (Cetes, commercial paper)
    - - greater than one year (Common stocks, preferred stocks)
    - - loans (commercial paper, bankers’ acceptance)
    - - Stocks (ADR’s, not with money markets because of the maturity)
    - - issuing new securities (the stock is brand new, very small)
      - Initial public offering (IPO):
        
        People they don’t know for the very first time and can be called “going public”
    - - Resale the stock among different individuals, among investors after they have been issued (huge volumes)
    - - Options, futures and swaps whose values are determined directly from other assets, and being used to speculate
- - - - Directly to investors (people you know, friends, family)
    - - middleman and facilities to preserve the securities loans. No responsible for the money
    - - receive the money form the savers and the banks are responsible for the money