An Introduction to Credit Markets
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There are two types of categories: equity market and the credit market. The former provides the mechanism by which investors can trade a share of ownership in publicly traded companies, and thus exchange a legal claim in their future profitability, while the latter is a platform in which participants can issue new debt or trade existing debt instruments.Although stocks and shares typically dominate the news and most retail investors’ focus, it is in fact the credit market where most of the action in capital markets takes place in.
Types of markets and participants
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