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Five Major Categories of Capital Markets

Here is a list of five major categories of capital markets and some corresponding investment instruments. Capital markets include the likes of the stock and bond markets and consists of companies or the government raising money for themselves.

(List of Typical Securities Traded)

1) Bond Market (ideally holdings for 3 yrs and up)
Mortgage bond: secured
Debentures: unsecured
Convertible bonds/debentures
Retractable Bonds: end bond early
Extendable Bonds
Real Return
Stripped Zero Coupon Bonds: just face value of bonds, low discount


2) Mortgage Market
NHA (National Housing Act) – Can be open or closed
Conventional (high, 25% down) – Can be open or closed
Reverse Mortgages

3) Stock Markets
Common Stock
Preferred Stock
Three Canadian Exchanges and OTC (over the counter) – Stock indices measure level of stock prices

4) Futures Market
Currencies (settled in currencies involved)
Commodities (deliver the commodity)
Interest rates (debt securities)
Stock index (settled in cash)
5) Options/Swaps/Swaptions

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