Wednesday, February 6, 2008

Capital market
  • Long-term funds are bought and sold:
    • Shares
    • Debentures
    • Long-term loans, often with a mortgage bond as security
    • Reserve funds
    • Euro Bonds

[edit] Money market
  • Financial institutions can use short-term savings to lend out in the form of short-term loans:
    • Credit on open account
    • Bank overdraft
    • Short-term loans
    • Bills of exchange
    • Factoring of debtors

[edit] Borrowed capital

This is capital which the business borrows from institutions or people, and includes debentures:

  • Redeemable debentures
  • Irredeemable debentures
  • Debentures to bearer
  • Hardcore debentures

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