2. Types of financial marketsFinancial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place.You are preparing to take an exam in your finance class, and you’ve been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded:Description of TransactionType of MarketHelen buys 1,000 shares of Microsoft stock through her online brokerage account. Description of TransactionType of MarketYou need gasoline now, so you drive to the gas station and purchase 10 gallons of gasoline. Description of TransactionType of MarketLong-term mortgage-backed securities are traded between investors and issuers. Description of TransactionType of MarketAn investor holding 3,000 shares of stock of Strata Corp. sells them to another investor. A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is .

People were following the system of exchange on an unsystematic platform where the activities are…

Answered: 2. Types of financial markets Financial…

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5DQ

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2. Types of financial markets

Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place.

You are preparing to take an exam in your finance class, and you’ve been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded:

Description of Transaction	Type of Market
Helen buys 1,000 shares of Microsoft stock through her online brokerage account.

Description of Transaction	Type of Market
You need gasoline now, so you drive to the gas station and purchase 10 gallons of gasoline.

Description of Transaction	Type of Market
Long-term mortgage-backed securities are traded between investors and issuers.

Description of Transaction	Type of Market
An investor holding 3,000 shares of stock of Strata Corp. sells them to another investor.

A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is .

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