What is Difference Between Capital Market and Money Market

8/10/2019 What is Difference Between Capital Market and Money Market

1/4

INVESTMENTS PORTFOLIO NOTES

What is investment:The action or process of investing money for profit or material result?

Investment portfolio:

A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual,

exchange-traded and closed-fund counter parts? Portfolios are held directly by investors and/or

managed by financial professionals

What is portfolio management?

The art and science of making decisions about investment mix and policy, matching investments to

objectives, asset allocation for individuals and institutions, and balancing risk against performance.

What is return and source of return from different investment?

1. dividend

2. interest

3. the basic on spot increase the leverage price

What is difference between capital market and money market?

Money marketsare used for the raising of short term finance, sometimes for loans that areexpected to be paid back as early as overnight. Whereas the capital markets are used for the

raising of long term finance, such as the purchase of shares, or for loans that are not expected to

be fully paid back for at least a year.

Capital markets:

1. The capital market is concerned with long term finance.The part of a financial system concerned with

raising capital by dealing in shares, bonds, and other long-term investments.

Stock markets in Pakistan:

A marketplace in which securities, commodities, derivatives and other financial instruments are traded.The core function of an exchange - such as a stock exchange.

Term:

TRADER: A person who buys and sells goods, currency, or stocks.

Trades:The action of buying and selling goods and services.
http://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Money_market


2/4

Transaction:

An instance of buying or selling something; a business deal.

Financial dealing at market rate.OR

An exchange or interaction between people.

Bid:

Buying

Spread' the amount by which the ask price exceeds the bid. This is

essentially the difference in price between the highest price that a buyer is willing to pay for an

asset and the lowest price for which a seller is willing to sell it.

Colors:

Red: down

Green: plus

Blue:unchanged

LCDP: last day of closing price

Market order:

A market order is an order to buy or sell a stock at the bestavailable price.

Generally, this type of order will be executed immediately. However, the price at which a marketorder will be executed is not guaranteed.

Limit order: Because the limit order is not a market order, it may not be executed if the

price set by the investor cannot be met during the period of time in which the order is left open. Limit

orders also allow an investor to limit length of time an order can be outstanding before being canceled.

(They offer of the share price is against of market rate is called limit order)

Value/ volume:

All-commodity volume (value) or ACV represents the total annual sales volume of

retailers that can be aggregated from individual store-level up to larger geographical sets. This measure

is a ratio, and so is typically measured as a percentage.

Future contract:

Where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined

price.

(Decide the price of share before purchase )


3/4

Cap and flow: upper side called cap and down side called flow

Primary market: issue of share and security is called primary market.

Secondary market: dead to its issue share is called secondary market.

Advance: increase of share price is called advance.

Decline: decrease of share price is called decline.

Mark to market: denoting or relating to a system of valuing assets by the most recent market price.

(The rate in which effect of profit account.)

Leverage:

In the world of finance, leverage is the use of borrowed money to make an investment and the return

on an investment.

Index creation:REATE INDEX creates a new index on the given table for the named column.

X-RATE CALCULATION:

Sharp ratio:

Ameasure that indicates the average return minus the risk-free return

divided by the standard deviation of return on an investment.

Returnexpected return

Standard deviation

1. Standardize ratio: The standardized mortality ratio or SMR, is a quantity, expressed as either

a ratio or percentage quantifying the increase or decrease in mortality of a study cohort with

respect to the general population.

Risk and return combination:

A profit from an investment is called return.

Asituation involving exposure to danger is called risk.


4/4

Documents

What is Difference Between Capital Market and Money Market