CS Intermediate Level
Financial Markets and Specialised Institutions glossary
Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.
14 terms from the free first chapter
C
- Capital market
Trades longer-term instruments, equities and bonds, the market this paper focuses on most.
Taught in Market organisation and structure
- Commodities
Physical goods, agricultural products, metals, energy, traded as an asset class in their own right.
Taught in Market organisation and structure
- Corporate bonds
Debt issued by companies, carrying credit risk specific to the issuer.
Taught in Market organisation and structure
- Currencies
Traded on foreign exchange markets, underlying much cross-border investment and trade.
Taught in Market organisation and structure
D
- Debt instruments
Represent a loan the issuer must repay, bonds, bills.
Taught in Market organisation and structure
- Derivative contracts
Instruments whose value derives from an underlying asset, used to hedge or speculate on price movements.
Taught in Market organisation and structure
E
- Equities
Ordinary and preference shares, representing ownership and carrying variable, residual return.
Taught in Market organisation and structure
- Equity instruments
Represent ownership, shares, carrying no fixed repayment obligation.
Taught in Market organisation and structure
- Exchange-traded market
Trading occurs on a formal, regulated exchange with standardised rules.
Taught in Market organisation and structure
G
- Government bonds and bills
Debt issued by the state, generally the lowest-risk instrument in a domestic market.
Taught in Market organisation and structure
M
- Money market
Trades short-term debt instruments, maturities of a year or less, Treasury bills, commercial paper.
Taught in Market organisation and structure
O
- Over-the-counter (OTC) market
Trading occurs directly between parties without a centralised exchange.
Taught in Market organisation and structure
P
- Primary market
Where new securities are issued directly to investors (see the chapter on raising capital).
Taught in Market organisation and structure
S
- Secondary market
Where already-issued securities are subsequently traded between investors, the Nairobi Securities Exchange (see the chapter on the securities exchange).
Taught in Market organisation and structure
The full glossary adds every term from the other 7 chapters, A to Z, each with the chapter that teaches it.