What is a capital market instrument?
Capital market instruments used for market trade include stocks and bonds, treasury bills, foreign exchange, fixed deposits, debentures, etc. As they involve debts and equity securities, the instruments are also called securities, and the market is referred to as securities market.
What are the different instruments of capital market explain?
The main instruments traded in the capital market are – equity shares, debentures, bonds, preference shares etc. The main instruments traded in the money market are short term debt instruments such as T-bills, trade bills reports, commercial paper and certificates of deposit.
What are the financial instruments of capital market?
Debt Securities can be classified into bonds and debentures:
- Bonds:
- Debentures:
- Derivatives:
- Exchange-Traded Funds:
- Foreign Exchange Instruments:
What are examples of money market instruments?
What Are Some Examples of Money Market Instruments? The money market is composed of several types of securities including short-term Treasuries (e.g. T-bills), certificates of deposit (CDs), commercial paper, repurchase agreements (repos), and money market mutual funds that invest in these instruments.
What is the difference between money and capital?
A quick definition from an academic website put it this way: “Capital comprises the physical and non-physical assets (such as education and skills) used in making goods and services. Money is primarily a means of exchanging one good for another.
What is money market and its instruments?
As the name suggests, Money Market Instruments are simply the instruments or tools which can help one operate in the money market. Some of the common money market instruments include Banker’s Acceptance, Treasury Bills, Repurchase Agreements, Certificate of Deposits and Commercial Papers.
What is money market and its components?
Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers. Over-the-counter trading is done in the money market and it is a wholesale process.
What does the Capital Markets Authority of Kenya do?
The Capital Markets Authority is a corporate body with perpetual succession and a common seal and capable in its corporate name of: Suing and being sued; Taking, purchasing or otherwise acquiring, holding, charging and disposing of both movable and immovable property; Borrowing and lending money; Entering into contracts; and
Where can I buy Treasury bonds in Kenya?
Treasury bonds are available in both the primary market (through auctions) and the secondary market (through the Nairobi Securities Exchange). An investor needs at least Kshs. 50,000 to purchase bonds in Kenya. ii. Corporate Bonds These are long-term (at least one year and above) debt instruments issued by the private sector.
What are the guidelines for the Capital Markets Act?
In the Capital Markets Act Cap 485A amended in 2013 guidelines for the amount of funds to be invested in each class of assets i.e. equities, government bonds and bills are given in ranges. Capital markets are a category of markets that facilitate the buying and selling of securities with medium-term and long-term maturity.
What kind of securities are traded in capital markets?
Capital markets are a category of markets that facilitate the buying and selling of securities with medium-term and long-term maturity. Instruments traded in capital markets include derivatives, treasury bills and bonds, corporate bonds, and commercial papers, among others.