Types of Financial Market

BREAKING DOWN 'Banker's Acceptance - BA' Considered negotiable instruments with features of a time draft, banker’s acceptances are created by the drawer and provide the bearer with the right to the amount noted on the face of the acceptance on the specified date.

Capital markets consist of suppliers and users of funds. Suppliers of funds include households and institutions serving them, such as pension funds; life insurance companies; charitable foundations such as colleges, hospitals, and religious institutions; and nonfinancial companies generating cash beyond their needs for investment.

A certificate of deposit, also known as a CD for short, is a special type of debt instrument issued by banks and other qualified financial institutions to savers who want to invest their savings and earn interest income.

Because commercial paper is issued by large institutions, the denominations of the commercial paper offerings are substantial, usually $100,000 or more. Other corporations, financial institutions, wealthy individuals and money market funds are usually buyers of commercial paper.

Federal agencies are special government organizations set up for a specific purpose such as the management of resources, financial oversight of industries, or national security issues. Federal agencies are special government organizations set up for a specific purpose such as the management of resources, financial oversight of industries, or national security issues.

What is a 'Repurchase Agreement - Repo' A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.

Most short-term tax exempts are issued by housing agencies for development or urban renewal projects. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.

T-bills, like all Treasury securities, can be bought and sold on the secondary market. Additionally, there are a number of mutual funds and ETFs that purchase T-bills. Additionally, there are a number of mutual funds and ETFs that purchase T-bills.