Cap Markts: Fin market where buyers and sellers engage in trade of financial securities. Channelize surplus funds from savers to institutions that invest them into a productive activity. derivates: a contract between two parties wich derives its value from from underlying asset. futures:financial contract obligating the buyer to purchase an asset or the seller to sell an asset in a predetermined future date and with a certain price.
options: fin contract that gives the buyer the option, but not the obligation, to buy(call) or sell (put) the underlying asset at an agred price during a period of time o det date.
credit derivate:contract that transfer the credit risk between two contrpart. Basically an insurance against the non-payment of a credit where the buyer of the protection pays a premium to the seller in change for receiving a payment in the case that the non-paym of credit occurs.
money mkt:fin mkt where financial instruments with high liquidity and short term maturities are traded. Bond: fix income instrument that rep a loan from an investor to a borrower.
Bsheet: summ of a firm financial positionn on a given date tht shows TA=TL+Equity. Income statement:summ of a firms revenues and expenses over a specified period, ending with net income or loss for the period.
Framework fin analysisi:anaylisis funds needed, financial conditions and profitability and business risk.