Investments and Financial Markets

1. What are the ultimate asset classes?

The asset classes are:

· Shares

· Bonds

· In the money market, Negotiable Certificate of Deposits (NCD’s) and Non-Negotiable Certificate’s of Deposits (NNCD’s)

· Hedge funds and private equity funds

· Property

· Commodities

(Faure, 2010:42)

2. Who are the issuers (borrowers where applicable) of these liabilities?

Issuer / Borrower	Asset
Corporations	Shares
Governments	Bonds
Banks	Money Market (NCD’s, NNCD’s)
Hedge and Private Equity Funds
Property
Commodities	Producers

3.

Asset	Issuer	Investor
Shares	Liability	Asset
Bonds	Liability	Asset
Money Market (NCD’s, NNCD’s)	Asset	Liability
Hedge and Private Equity Funds
Property
Commodities	Liability	Asset

4. Financial markets.

List of References:

FAURE, AP, 2010. Investments: An Introduction. Grahamstown: Rhodes Univeristy.