... securities. Capital market instruments can be further divided into four categories, debt markets, equity markets and derivative markets which constitute options and futures contracts the latter we will only be discussing in short since derivatives are risky speculative income, far more suited for risk hedging. 2. Debt markets Debt markets provide a means of long term borrowing for a number of parties including corporations, government agencies, municipalities and special trusts. Debt instruments can be classified as secured, unsecured, tax exempt, convertible debt, publicly issued or privately held. The classification of debt instruments depends on the intrinsic nature of the debt the "market they are issued, currency they are payable in, protective features and their legal status"1. Some debt instruments include bonds which is a long term contract under which a borrower agrees to make interest and principal payments at a specified date, debentures are unsecured bond with no lien against ...

See this essay or coursework document in full right now