I. Definitions: Define any ten terms. Give examples where pertinent. Finance Primary market Deficit Secondary market Percentage point(s) Debt Return Equity Capital Market Financial Intermediary...

PART 1:
1) Capital Market: Capital market can be defined as the place where savings and investments are transacted among the supplier who is having capital and other one is the person in need of capital. Capital market can be divided into two types of market such as primary market where new securities are purchased and sold and secondary market where already issued securities are traded. It includes stock market and bond market. This type of market aims at improving the efficiency related to transactions.
2) Primary market: It is type of capital market where the newly issued share and bonds of the company are traded. This market is also termed as the new issues market. Generally the new issues take place in the form of initial public offerings. In this market all the issues are subject to strict regulations and the prices in the primary market are often volatile as in this there is unpredictable demand in this type of market.
3) Secondary market: This is also the type of capital market where the securities are traded after the entity has sold its securities in the primary market. It is also termed as the stock market such as New York stock exchange, London stock exchange and many other prominent secondary markets. The secondary market has two different categories such as auction and dealer market (Leslie Kramer 2019).
4) Debt: Debt can be defined as the amount of money borrowed by one party from another party. It is utilized by various entity and individual as the way for making large purchases which they could not afford in the normal situation. The most common example of debt includes loan such as mortgage, credit card debt and other type of loan. In this borrowing party gets permission to borrow money at interest.
5) Equity: It is generally referred as the shareholder equity which describes the sum of money which would be returned to the shareholder of the entity in case when all the assets of the entity were liquidated and all the debt of the entity are paid off. It represents the stake of the shareholder in the entity (Chris B Murphy 2019).
6) Sources of funds: Every business requires money for functioning and the money needed to make business function is termed as business funds. It is required in all the stages of the business. Thus sources of funds are used in the activities of the business. The sources of funds can be categorized on the basis of time period, ownership and control and the source of generation.
7) Financial Intermediaries: Financial intermediary can be defined as the organization which acts as the connection between the investors and borrowers to meet the financial aim of both the parties. In other words this can be termed as the business entity which plays two significant roles in the economy includes creating the funds and governing the payment system. There are different types of the financial intermediaries...