Primary vs. Secondary Markets / Money Markets vs. Capital Markets

Money markets

At the same time, other individuals, businesses, governments, and financial institutions find themselves in need of seasonal or temporary financing.

secondary markets

However, suppliers of funds or the holders of the securities may decide to sell the securities that have previously been purchased. The sale of previously owned securities takes place in _______.

Capital markets

On the other hand, securities with longer-term maturities are sold in _______.

Philippine Stock Exchange (PSE)

The ____ is both a primary and secondary market.

capital market

The key ______ securities are bonds (long-term debt) and both common stock and preferred stock (equity, or ownership).

private placement

The sale of new securities to one investor or a group of investors (institutional investors) is referred to as a __________.

public offering & initial public offering

The sale of new securities to the general public is referred to as a _______ and the first offering of stock is called an ________.

Money markets

They are created because some individuals, businesses, governments, and financial institutions have temporarily idle funds that they wish to invest in a relatively safe, interest-bearing asset.

primary market

To raise money, users of funds will go to a ________ to issue new securities (either debt or equity) through a public offering or a private placement.

Money markets

are a venue wherein securities with short-term maturities (1 year or less) are sold.