Financial Markets

  1. Classification of Financial Markets
    1. By Type of Financial Claim
      1. Debt Markets
        1. Characteristics of Debt Instruments
          1. Fixed Income Securities
            1. Credit Risk Considerations
            2. Equity Markets
              1. Characteristics of Equity Instruments
                1. Ownership Rights and Claims
                  1. Residual Claims on Assets
                  2. Hybrid Securities
                    1. Convertible Securities
                      1. Preferred Stock Features
                    2. By Maturity of Financial Claims
                      1. Money Markets
                        1. Definition and Features
                          1. Short-Term Nature
                            1. High Liquidity Characteristics
                              1. Typical Money Market Instruments
                              2. Capital Markets
                                1. Definition and Features
                                  1. Long-Term Investment Focus
                                    1. Typical Capital Market Instruments
                                  2. By Timing of Delivery
                                    1. Spot Markets
                                      1. Immediate Settlement
                                        1. Current Market Prices
                                        2. Forward Markets
                                          1. Future Delivery Contracts
                                            1. Customized Terms
                                            2. Futures Markets
                                              1. Standardized Contracts
                                                1. Exchange-Traded Features
                                              2. By Organizational Structure
                                                1. Exchange-Traded Markets
                                                  1. Centralized Trading
                                                    1. Standardized Contracts
                                                      1. Regulatory Oversight
                                                        1. Examples of Major Exchanges
                                                        2. Over-the-Counter Markets
                                                          1. Decentralized Trading
                                                            1. Customized Contracts
                                                              1. Dealer Networks
                                                                1. Regulatory Considerations
                                                              2. By Stage of Issuance
                                                                1. Primary Markets
                                                                  1. New Security Issuance
                                                                    1. Capital Formation Role
                                                                      1. Underwriting Process
                                                                      2. Secondary Markets
                                                                        1. Trading of Existing Securities
                                                                          1. Liquidity Provision
                                                                            1. Price Discovery Function

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                                                                        1. Introduction to Financial Markets

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                                                                        3. Money Markets