Corporate Finance/ Money and Capital Markets

fountainhead ONE Operating additions argon long-lived assets that ar utilize in normal business operations which be non held for resale to customers. Investments in operating assets atomic number 18 essential to the success of near(a) to businesses. There be three major categories of operating assets: property, plant, and equipment which are sometimes referred to as plant assets or fixed assets; infixed resources; and intangible asset assets. Property, plant, and equipment holds land; land improvements, such as driveways, lay lots, fences, and homogeneous items that require periodic repair and replacement; buildings; equipment; vehicles; and furniture. An asset acquired for or used in the income generating operations of the business (such as cash, inventory, prepaid expenses) and various fixed, long-term assets. A non- bodily asset. Examples of financial assets include coast accounts and shares in a publicly-traded company. Financial assets are opulent from physical assets like real estate and personal property. In general, when champion speaks of investing and the merchandise, one is referring to financial assets, though both those terms may include non-financial assets like corn or wheat. QUESTION TWO Money food merchandise is distinguished from peachy market on the basis of the maturity period, credit instruments and the institutions: 1.

Maturity tend: The coin market deals in the lending and borrowing of petty pay (i.e., for one year or less), while the pileus market deals in the lending and borrowing of long-term finance (i.e., for more than one year). 2. Credit Instr uments: The main credit instruments of the ! funds market are call money, collateral loans, acceptances, bills of exchange. On the unalike hand, the main instruments used in the capital market are stocks, shares, debentures, bonds, securities of the government. 3. Nature of Credit Instruments: The credit instruments dealt with in the capital market are more heterogeneous than those in money market. any(prenominal) homogeneity of credit...If you want to get a full essay, clubhouse it on our website: OrderCustomPaper.com

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