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19 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Primary market |
Market for newly-issued securities |
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Secondary market |
Market where previously-issued securities are traded by investors |
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Privately held firm |
Firm with less than 499 shareholders, raise funds through private placement, less obligation to release financial statements |
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Publicly traded |
Firm that raises capital from a wide range of investors by issuing stock in an IPO |
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Initial public offering |
Sale of shares of stock by a previously privately held company |
Also called IPO |
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Seasoned equity offering |
An issuing of more stock by a company that has already had its IPO |
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Underwriter |
Investment banker who markets public offerings to investors |
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Bookbuilding |
An investment banker collects offers by investors to determine demand for new securities |
Offers are called books |
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Shelf registration |
Registering securities at IPO but keeping them and gradually selling them to the public for up to 3 years |
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Direct search |
Buyers and sellers seek each other out |
Craigslist |
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Brokered market |
Brokers search out buyers and sellers |
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Dealer markets |
Dealers have inventories of assets from which they buy and sell |
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Auction markets |
Traders converge at one place to trade |
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Bid price |
Price at which the dealer is willing to buy / investor will sell |
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Ask price |
Price at which dealer is willing to sell / investor will pay |
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Market order |
Transaction executed immediately; uses current market price |
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Price-contingent order |
Trader specifies a buying/selling price for an order |
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Limit order |
Price contingent order to buy/sell a security when the price is optimum (can make a profit) |
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Stop order |
Price contingent order to prevent losses |
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