Indirect Finance Example
• Vanguard Short-Term Treasury Fund (VFISX)– Profile - The investment seeks current income. The
fund invests at least 80% of assets in U.S. Treasury bills, notes, bonds, and other guaranteed U.S. government obligations. It maintains an average weighted portfolio maturity of between one to four years.
– Net Assets $6.67B– Minimum Investment $3,000.00
Structure of Financial Markets
• Primary Market– New security issues sold to initial buyers– Typically involves an investment bank who
underwrites the offering• Secondary Market– Securities previously issued are bought
and sold– Examples include the NYSE and Nasdaq– Involves both brokers and dealers
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