COMMERCE 2FA3 Lecture Notes - Human Capital
8 Mar 2014
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Document Summary
The major classes of securities are fixed-income securities which are often bonds these have the lowest risk and are considered debt payments. There are also equity securities represent ownership of firms and their assets. The third type of security are derivatives which are such instruments as options, futures and swaps. 0. 30/2. 5 = 0. 12 = 0. 12 + (-0. 02) = 10: money markets are trading in securities with a maturity of less than one year is done, Capital markets allow for the trading of longer-term instruments: real assets include such things as plant and equipment, houses and human capital. They allow society to produce goods and services which add to the well-being of its members. Financial assets are certificates or book entries representing legal entitlement to ownership or promised payments. Securities consist of stocks, and bonds that are traded in financial markets. Only initial investment is lost at most and not their personal wealth even if things go bad.
