Buying & Selling Securities. Primary Markets Primary markets: buyers invest in newly offered stock  Initial Public Offerings (lPO)  New issues of stock.

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Presentation transcript:

Buying & Selling Securities

Primary Markets Primary markets: buyers invest in newly offered stock  Initial Public Offerings (lPO)  New issues of stock  Investment banking firms

Secondary Markets Secondary markets (aftermarket) Secondary markets (aftermarket) Stocks bought & sold on exchangesStocks bought & sold on exchanges Stocks traded must be listed securitiesStocks traded must be listed securities Brokerage firms - members of an exchangeBrokerage firms - members of an exchange

Exchanges NYSE - largest in world, strict requirements, 75% of market value of ALL listed stocksNYSE - largest in world, strict requirements, 75% of market value of ALL listed stocks AMEX - second largest exchange in U.S., requirements are not as toughAMEX - second largest exchange in U.S., requirements are not as tough

Exchanges Over The Counter (OTC) market: stocks not sold on an exchange  traded via computerOver The Counter (OTC) market: stocks not sold on an exchange  traded via computer  Prices negotiated through the NASDAQ  Few listing requirements

NASDAQ

New York Stock Exchange

Knowledgeable investors consider many factors Knowledgeable investors consider many factors Exchange indices - average values Exchange indices - average values Dow Jones Ind Avg. most widely reportedDow Jones Ind Avg. most widely reported S&P 500 also well knownS&P 500 also well known Updated economic & financial news Updated economic & financial news Business trends in specific industries Business trends in specific industries Information on specific companies Information on specific companies