Submitted by: Submitted by amitmahida
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Words: 844
Pages: 4
Category: Business and Industry
Date Submitted: 10/23/2015 12:12 PM
King Graduate School, Monroe College
Master in Business Administration
MG 762-145: Financial markets & Institutions
Professor: Dr. Gracer Yung
Assignment week 1
Student Name: Indrajitsinh D Mahida
Student ID: 0164013
09/11/2015
Question 1
Before I go for the first question, I would like to include some basics information about different types of financial markets. There are six types of financial markets, i.e. Primary markets, Secondary markets, Money markets, Capital markets, foreign exchange markets, and Derivative markets.
Primary markets mean markets where corporation raise funds through new issues of securities. And secondary markets means trade the financial instruments ones they are issued. On the basis of this understanding these are the following answer of question.
1) Primary market - IBM issues $200 million of new common stock –
2) Primary market -The New Company issues $50 million of common stock in an IPO
3) Secondary market- IBM sells $5 million of GM preferred stock out of its marketable securities portfolio
4) Secondary market- The Magellan Fund buys $100 million of previously issued IBM bonds
5) Secondary market -Prudential Insurance Co. sells $10 million of GM common stock
Question 2
Here if trade of debt securities or instruments with maturities that and if that period is less than one year so it called Money market securities. If trade of debt and equity instruments with maturities which are more than one year, it called capital markets securities.
1) Federal Funds – money market security
2) Common Stock – capital market security
3) Corporate Bonds – capital market security
4) Mortgages – capital market security
5) Negotiable Certificates of Deposit – money market security
6) U.S. Treasury Bills – money market security
7) U.S. Treasury Notes – capital market security
8) U.S. Treasury Bonds – capital market security
9) State and Government Bonds – capital market...