BF21 2.01 Financial Market flash cards

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Financial Market

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A marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies, and derivatives.

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Liquidity

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The ease with which an asset can be converted into cash without affecting its market price.

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Efficiency

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The degree to which market prices reflect all available, relevant information.

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Call Markets

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Markets where transactions occur at specific times and prices are determined by supply and demand at those times.

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Continuous Markets

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Markets where trading can occur at any time the market is open, with prices determined continuously.

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Eurocurrency

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Currency deposited by national governments or corporations in banks outside their home market.

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Eurobond

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An international bond that is denominated in a currency not native to the country where it is issued.

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Commodity

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A basic good used in commerce that is interchangeable with other goods of the same type.