Please enable JavaScript.

Coggle requires JavaScript to display documents.

FINANCIAL MARKET - Coggle Diagram

- - - - Markets that trade financial instruments once they are issued.
      - Function of Secondary Market
        
        The determined security prices serve as a reference basis for the secondary market*
        
        Determining the pricing of securities issued and sold by companies in the primary market
    - - Markets in which corporations raise funds through new issues of securities.
      - Function of Primary Market
        
        Operational infrastructure for the secondary market
        
        Securitization
        
        The determined security prices serve as a reference basis for the secondary market
  - - - Capital market
        
        1 year, capital raising, high risk/return
      - Money market
        
        <1 year, liquidity, low risk/return
    - - Debt
        
        Raise funds via debt (bonds, mortgages)
        
        Pay interest + principal at maturity
        
        Maturity: Short (less than 1 year), Medium (1-10 years), Long (more than 10 years)
      - Equity
        
        No maturity -> long term
        
        Share income + assets
        
        Raise funds via equities (stocks)
        
        Dividends + voting rights
- - - - Primary Markets and Secondary Markets
    - - Duration: Money and Capital Market
      - Instrument :
        Debt & Equity Market