Financial Markets For The Rest Of Us An Easy Guide To Money, Bonds, Futures, Stocks, Options, And Mutual Funds
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Here are a few other concepts and terms we may need to clarify:
Securities are paper or electronic certificates evidencing ownership of
equity (stocks), debt obligations (bonds), or rights (options and
futures). Capital market refers to the market in which corporate equity
(stocks) and longer-term debt securities (those maturing in more than
one year) are issued and traded. These include any stocks and Treasury
bonds. Money market refers to the market in which short-term debt
securities are purchased and sold. Money market securities generally
are highly liquid (easily converted to cash) securities that mature in less
than one year, typically less than 90 days. These include 3-month T-bills
and Commercial Papers (short-term promissory notes issued by
corporations) ….