Stock Valuation Flashcards
Equity without priority for dividends or in bankruptcy.
common stock
A procedure in which a shareholder may cast all votes for one member of the board of directors.
cumulative voting
A grant of authority by a shareholder allowing another individual to vote his or her shares.
proxy
Stock with dividend priority over common stock, normally with a fixed dividend rate, sometimes without voting rights.
preferred stock
The market in which new securities are originally sold to investors.
primary market
The market in which previously issued securities are traded among investors.
secondary market
An agent who buys and sells securities from inventory.
dealer
An agent who arranges security transactions among investors.
broker
As of 2006, a member is the owner of a trading license on the NYSE.
member
NYSE members who act as dealers in particular stocks. Formerly known as “specialists.”
designated market maker
NYSE members who execute customer buy and sell orders.
floor brokers
Investment firms that are active participants in stocks assigned to them. Their job is to make a one-sided market (i.e., offering to either buy or sell). They trade purely for their own accounts.
supplemental liquidity providers (SLPs)
A fixed place on the exchange floor where the DMM operates.
DMM’s post
Securities market in which trading is almost exclusively done through dealers who buy and sell for their own inventories.
over-the-counter (OTC) market
The highest bid quotes and the lowest ask quotes for a security.
inside quotes
