FINANCIAL MARKETS

Security

Any financial asset that can be traded, such as stocks, bonds, or options.

Interest

The cost of borrowing money, charged by a lender to a borrower.

Financial Intermediaries

Institutions that hold funds from savers and lend them to borrowers, acting as a link between the two.

Debt Market

Involves issuing debt instruments like bonds or mortgages at fixed or variable interest rates.

Equity Market

Involves issuing shares or options in return for a share of future profits in the form of dividends.

Primary Market

Where new financial securities are issued for the first time for capital-raising purposes.

Secondary Market

Where existing financial securities are traded among investors, not involving the original issuer.

Derivatives Market

Where financial products derived from securities are traded, like swaps, futures, and options.

Superannuation

Compulsory payments by employers into a fund to increase retirement savings for employees.

Foreign Exchange Market

Where foreign currencies are bought and sold, facilitating global trade and financial transactions.