ECN 506 Lecture Notes - Lecture 10: Otc Bulletin Board, Dow Jones Industrial Average, Nyse American
Document Summary
Module 4: securities markets and foreign exchange markets. Securities markets (stocks and bonds) play a key role in channeling funds from savers to investors. Other participants (brokers, dealers, investment banks) assist savers and firms in trading (buying and selling) securities. 4. 1 stock and bond markets primary and secondary markets. Corporations, governments, and firms issue securities such as stocks and bonds when they need to raise capital. Investors can purchase the stocks or bonds issued by these institutions. Stocks and bonds are issued and traded in two markets: primary markets, and secondary markets. Primary market: a financial market in which new issues of securities (ipos) are sold to initial purchasers at corporations or government agencies through investment banks, that underwrite the securities. Underwriting new securities means investment banks buy the new issue from the issuing corporation, at a guaranteed price, and then sell them to the public. This is known as a primary issue .
