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A security is a tradable financial asset.The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction.In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition.
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, [1] in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long ...
The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold. The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or ...
According to behavioral finance, humans often make irrational decisions—particularly, related to the buying and selling of securities—based upon fears and misperceptions of outcomes. The irrational trading of securities can often create securities prices which vary from rational, fundamental price valuations.
The category of distressed securities comprises financial strategies for the profitable investment of working capital into the corporate equity and the securities of financially weak companies. [ 41 ] [ 42 ] [ 43 ] The investment of private-equity capital into distressed securities is realised with two financial strategies:
The primary market is the part of the capital market that deals with the issuance and sale of securities to purchasers directly by the issuer, with the issuer being paid the proceeds. [1] A primary market means the market for new issues of securities, as distinguished from the secondary market, where previously issued securities are bought and ...
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt ...
Capital notes are several types of securities. "Capital note" has a number of meanings, as it can be either an equity security, a debt security or a form of security used in structured finance . In all cases, the use of the term "capital" is to denote that the security is relatively junior in the issuing corporation's order of priorities in ...