NAME: SITI HAPIJA BINTI BASIR

GROUP: M1BA2425A
SUBJECT: FIN645

1. Define Market and Financial Market.

➢ Market is a venue where goods and services are exchanged.
➢ A financial market is a place where individuals and organizations wanting to borrow
funds are brought together with those having a surplus of funds.

2. What is an IPO?
➢ An initial public offering (IPO) is where a company issues stock in the public market
for the first time.

3. Differentiate - Primary vs. Secondary Market.

Primary Market Secondary Market
 Where new issues of a securities are  Where previously issued securities
sold to initial buyers. are traded.

 This is the only time the issuing firm  The issuing corporation does not get
ever gets money for the securities. any money for stocks traded on the
secondary market.

4. Differentiate - Money Market vs. Capital Market.

Money Market Capital Market
 Money markets trade debt securities  Capital markets trade stocks and
or instruments with maturities of one long- term debt with maturities
year or less greater than one year