Financial Market Terms
Placement or transfer of money
Assets, instruments or investments that are recognised in the financial system, and can be easily bought and sold or priced
Example: Cash, deposits, stocks, bonds, unit trust, options, futures
Marketplace for buying and selling of any financial assets
Institution or person that provides financial advice. These activities are usually regulated or governed and requires the institution and person to be licensed
Medium or channel for money or financial assets pass through
Government body that manages the country’s currency, money supply and interest rates
Example: People’s Bank of China, Hong Kong Monetary Authority, Monetary Authority of Singapore, European Central Bank, Federal Reserve
Managing liquidity, returns, risks of all money and financial instruments in country or company
Where you can keep and borrow money. Common services include loans, deposits, remittance, credit cards and investments
Where businesses and companies can find capital in the form of equity or debt. Common services include underwriting for bonds and equities for IPOs, trading and investment activities.
Buy and sell financial securities on public stock exchange
Buy and sell global financial assets, usually only for financial institutions
Buy and sell global financial assets, usually only for financial institutions. They may engage in holding positions, for hedging or speculative purposes
Change money from one currency to another
Transfer money from one account to another (can be to another country)
E-commerce Payment Gateway
Making payment for online transactions.
IPO (Initial Public Offering)
The process of offering stock of a company on a public exchange for the first time.
USD (United States Dollar)
The currency for the United States. Its value is usually expressed with another currency, for example USD/SGD =1.35 (US$1= SG$1.3)
LIBOR (London Interbank Offered Rate)
The average rate in which banks in London will charge to lend to each other. This rate is used as a benchmark for short-term interest rates around the world.
NASDAQ (National Association of Securities Dealers Automated Quotations)
Another major stock exchange in the US, and the second largest exchange in the world, behind NYSE.
SGX (Singapore Stock Exchange)
The Singapore stock exchange
NYSE (New York Stock Exchange)
One of the major stock exchanges in the US, and the largest one in the world.