Module 1: Introduction to Capital Markets

Vocabulary flashcards covering key definitions, instruments, market structures, and Philippine financial institutions from Module 1: Introduction to Capital Markets.

Capital Markets

A marketplace for long-term financing that connects investors with surplus funds to businesses and governments needing capital for long-term use.

Financial Markets

Broader venues where financial claims are issued, bought, sold, or traded.

Money Markets

Financial markets focused on short-term financing and liquidity, usually with maturities of one year or less, used primarily for cash management.

Stock

An equity instrument representing an ownership claim in a company, where an investor participates in the firm's upside and downside.

Bond

A debt instrument representing a lending relationship where the issuer promises interest payments and principal repayment at maturity.

Primary Market

The market stage where newly created securities are issued and sold by a company or government, allowing the issuer to receive the raised funds.

Secondary Market

The market venue where investors trade previously issued securities among themselves, without the issuing company receiving proceeds from the transaction.

Mobilize Savings

A major function of capital markets that channels surplus funds from households, pension funds, banks, and institutions into productive investments.

Price Discovery

The function of capital markets where ongoing market buying and selling activity helps form the prices and yields of financial securities.

Liquidity

The ability provided by secondary markets that allows investors to easily enter or exit investment positions by trading securities after issuance.

Philippine Stock Exchange (PSE)

A self-regulatory organization in the Philippines that supports a fair, efficient, transparent, and orderly market for securities and provides a venue for companies to raise capital.

Bureau of the Treasury (BTr)

The Philippine government agency that administers government securities and provides fixed-income opportunities to investors.

Retail Treasury Bonds (RTBs)

Medium- to long-term debt securities issued by the Philippine National Government through the Bureau of the Treasury to make fixed-income securities accessible to retail investors.