Exam3-Final-19 Flashcards
Security Markets
financial market place for stocks, bonds, and other investments.
- Assist businesses in finding long term funding to finance capital needs.
- provide private investors a place to buy and sell securities
Type of Security Markets
Primary-handle the sale of new securities.
Secondary-handles the trading of these securities between investors.
IPO
Initial Public Offering
-first public offering of a corporations stock.
Investment Banker
specialist’s who assist in the issue and sale of new securities.
Institutional investors
large organizations that invest their own funds or the funds of others.
Stock Exchange
organization whose members can buy and sell securities for companies and individual investors.
Over the Counter Market
Exchange that provides a means to trade stocks not listed on the national exchanges.
Securities and Exchange Commission
Federal agency that has responsibility for regulating the various stock exchanges.
Buying stock on margin
borrowing some of the stocks purchase cost from the brokerage firm
program trading
instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potenitional losses
mutual fund
organization that buys stocks and bonds and then sells shares in those securites to the public.
Diversification
buying several different investment alternatives to spread the risk of investing
