Question

In: Finance

Indicate whether the following instruments are examples of money market or capital market securities U.S. Treasury...

Indicate whether the following instruments are examples of money market or capital market securities

  1. U.S. Treasury bills
  2. Long-term corporate bonds
  3. Common stocks
  4. Preferred stocks
  5. Dealer commercial paper

In two sentences identify and briefly compare the two leading stock exchanges in the United States today

Solutions

Expert Solution

Money market refers to instruments which are issued for less than a year, in other words, these are short-term sources of funds

While, capital market securities are long-term sources of funds - generally, more than a year

US Treasury Bills - Money market

Long-term corporate bonds - Capital Market

Common Stocks - Capital Market

Preferred Stocks - Capital Market

Dealer Commercial Paper - Money market

The two leading stock exchanges in the US are : NYSE and NASDAQ

  • NYSE - New York Stock Exchange : - located at Wall Street, New York; NYSE is the largest stock exchange in the world. The cummulative Market capitalization of all the listed entites in the exchange is $28.8 Trillion - comprising of over 2,300 listed companies
  • NASDAQ -  National Association of Securities Dealers Automated Quotations - Market capitalization is ~$10 trillion - with approximately 8,100 listings, NASDAQ is the second largest stock exchange in the world

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