{"id":884,"date":"2023-07-12T17:39:15","date_gmt":"2023-07-12T17:39:15","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/?post_type=chapter&#038;p=884"},"modified":"2023-07-12T17:44:42","modified_gmt":"2023-07-12T17:44:42","slug":"reading-financial-markets","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/reading-financial-markets\/","title":{"raw":"Reading: Financial Markets","rendered":"Reading: Financial Markets"},"content":{"raw":"<img class=\"alignnone size-medium wp-image-887\" src=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-300x267.png\" alt=\"Money Market with coins Capital Market with graph\" width=\"300\" height=\"267\" \/>\r\n\r\nThe financial markets include both the short-term market called the Money Market and the long-term market called the capital market.\r\n<p id=\"mntl-sc-block_1-0-1\" class=\"comp mntl-sc-block finance-sc-block-html mntl-sc-block-html\">The <strong>money market<\/strong> refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.<\/p>\r\n<p id=\"mntl-sc-block_1-0-3\" class=\"comp mntl-sc-block finance-sc-block-html mntl-sc-block-html\">In all of these cases, the money market is characterized by a high degree of safety and relatively low rates of return.<\/p>\r\n<strong>Capital market<\/strong>s are where savings and investments are channeled between suppliers and those in need. Suppliers are people or institutions with capital to lend or invest and typically include banks and\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/i\/institutionalinvestor.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">investors<\/a>. Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/s\/stockmarket.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">stock market<\/a>\u00a0and the\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bondmarket.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"3\">bond market.<\/a> They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities.\r\n\r\n<img class=\"alignnone size-medium wp-image-885\" src=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-300x143.png\" alt=\"capital markets include IPO, equity and debt\" width=\"300\" height=\"143\" \/>","rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-887\" src=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-300x267.png\" alt=\"Money Market with coins Capital Market with graph\" width=\"300\" height=\"267\" srcset=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-300x267.png 300w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-768x684.png 768w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-65x58.png 65w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-225x200.png 225w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM-350x312.png 350w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.38.43-AM.png 844w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>The financial markets include both the short-term market called the Money Market and the long-term market called the capital market.<\/p>\n<p id=\"mntl-sc-block_1-0-1\" class=\"comp mntl-sc-block finance-sc-block-html mntl-sc-block-html\">The <strong>money market<\/strong> refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.<\/p>\n<p id=\"mntl-sc-block_1-0-3\" class=\"comp mntl-sc-block finance-sc-block-html mntl-sc-block-html\">In all of these cases, the money market is characterized by a high degree of safety and relatively low rates of return.<\/p>\n<p><strong>Capital market<\/strong>s are where savings and investments are channeled between suppliers and those in need. Suppliers are people or institutions with capital to lend or invest and typically include banks and\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/i\/institutionalinvestor.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">investors<\/a>. Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/s\/stockmarket.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">stock market<\/a>\u00a0and the\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bondmarket.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"3\">bond market.<\/a> They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-885\" src=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-300x143.png\" alt=\"capital markets include IPO, equity and debt\" width=\"300\" height=\"143\" srcset=\"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-300x143.png 300w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-1024x489.png 1024w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-768x366.png 768w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-65x31.png 65w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-225x107.png 225w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM-350x167.png 350w, https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-content\/uploads\/sites\/143\/2023\/07\/Screenshot-2023-07-12-at-11.37.04-AM.png 1358w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n","protected":false},"author":107,"menu_order":8,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-884","chapter","type-chapter","status-publish","hentry"],"part":843,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/users\/107"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/884\/revisions"}],"predecessor-version":[{"id":888,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/884\/revisions\/888"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/parts\/843"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/884\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/media?parent=884"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapter-type?post=884"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/contributor?post=884"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/license?post=884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}