Question

which one is not market securities a) capital market b) primary market c) money market d) secondary market e) dow jones

Answer 1

To answer this question, it is firstly important to understand the above terms properly.

There are two types of financial markets in an economy.

a. Capital Market - Deals in long-term financial instruments or commodities, say more than one year. For example - Shares, Bonds.

c. Money Market - Deals in short-term financial instruments or commodities, say less than one year. For example - Treasury Bills, Commercial Bills, Commercial Paper and Call Money.

Capital Markets can be further classified into two categories.

b. Primary Market - It is also called new issue market which deals exclusively in new securities. For example, Initial Public Offer, Rights Issue by a company.

d. Secondary Market - It is most commonly called a stock market or stock exchange. It deals in trading of already existing securities. For example, trading of shares and bonds on NYSE.

e. Dow Jones, a financial news company, owns Dow Jones Industrial Average (DJIA) index which tracks the performance of public companies. It is an index just like S&P 500.

It can be said that none of the above are market securities but are rather the markets in which securities are traded.