market for new issues of securities
market for already existing securities
initial public offering (IPO)
first sale of stock by a formerly private company
underwriters purchase securities from the issuing company and resell them
a description of the firm and the security it is issuing
primary offerings in which shares are sold directly to a small group of institutional or wealthy investors
seasoned equity offerings
are offered by companies that already have floated equity.
bonds public offering
an issue of bonds sold to the general investing public that can then be traded on the secondary market
bonds private placement
an issue that usually is sold to one or a few institutional investors and is generally held to maturity.
prospectus that includes a statement printed in red, stating that the company is not attempting to sell the security before the registration is approved.
investment bankers purchase securities from an issuing company and then resell the to the public.
advertisements in the financial press to announce a prospective sale.
allows firms to register securities and gradually sell them to the public for two years following the initial registration.
the securities are on the shelf ready to be issued, which has given rise to this term
allows corporations to make private placements without preparing extensive and costly registration statements required of a public offering.
investment bankers travel around the country to publicize an imminent offering.
indications of interest in an IPO
the process of polling potential investors
direct search markets
is the east organized market. buyers and sellers must seek each other out directly.
markets where trading in a good is active, brokers find it profitable to offer search services to buyers and sellers.
markets in which traders specializing in particular assets buy and sell for their own accounts
a market where all traders meet at one place to buy or sell an asset.
the price at which a dealer or other trader is willing to purchase a security
the price at which a dealer or other trader will sell a security
the difference between a dealer's bid and asked price
limit buy (sell) order
an order specifying a price at which an investor is willing to buy or sell a security
trade is not to be executed unless stock hits a price limit