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