LO 0-4: Primary and Secondary Markets Flashcards
companies raise money by issuing stocks and bonds on the:
- primary market
- secondary market
- both
primary market
the first time a company issues a stock to the public is called:
- secondary stock offering
- initial stock offering (IPO)
- first public offering (FPO)
- primary stock offering (PSO)
-initial stock offering (IPO)
what type of banks help corporations raise money by issuing stocks and bonds?
- pension fund
- mutual fund
- commercial bank
- investment bank
-investment bank
which of the following are secondary markets?
-NYSE
-AMEX
-Russell 3000
-S&P 500
-NASDAQ
=DOW
- NYSE
- AMEX
- NASDAQ
you should believe anything you read from sell-side analysts
True or False
False
Why do companies care about their stock price on the secondary market?
- if the stock price falls they will not be able to continue to operate
- it will affect them if they need to issue more stock
-it will affect them if they need to issue more stock
when you buy a stock you are typically buying it :
- directly form the company
- on a secondary market
- from an investment bank
-on a secondary market
the largest stock exchanges in the world are located in:
- Japan
- China
- USA
- Germany
-USA
primary market process raises money by
issuing stocks or bonds
who facilitates the securities?
investment banks
who buys stocks and bonds>?
financial intermediaries or households - individual person
example of a financial intermediary
mutual or pension fund
Investment banks make a lot of money because they take
a percentage for deal
investment banks make more money issuing ____ than ____
bonds than stocks
which market is larger?
bond market is larger than stock market
Primary market
corporations issue stock or bonds to raise money
then you have the investment and bank households/financial intermediary
who do you sell your stocks to?
a secondary market
secondary markets are
NYSE, NASDAQ or AMEX
what are indexes?
DOW, S&P 500, and Russell 3000
you only deal directly with the corporation on the _________ market
primary
sell side
recommendations from investment banks - marketing shares and facilitating information
not reliable because they want to make money and if you sell- they make a profit, they might push you towards a bad decision
buyside
analysts from financial intermediaries - from pension and mutual fund. they make them public and don’t make recommendations just provide information
example of sellside
seekingalpha.com
