MGT330H5 Lecture Notes - Lecture 2: Ontario Securities Commission, Investment Banking, Private Placement
Document Summary
Lecture #2 - trading, investment funds and international investing. Primary - new issue through investment bank. Secondary - existing owner sells to another party. Prospectus required when selling to general public. Sale to limited number of sophisticated investors. Market order - specify the volume of trade and filled in real-time. Limit order - specify volume and price and order will be placed until it is executed or cancelled. Market-on-close - market order which is transacted at daily closing price. Stop-loss - stock is sold if its price falls below a stipulated level. Stop-buy - stock is bought if its price rises above given limit. Registered traded - maintaining a book listing all unexecuted limit orders and are obligated to meet at least a limited amount of market orders. Algorithmic trading - programmed decisions which exploit small discrepancies in security price. High frequency trading (part of algorithmic trading) - computer-initiated orders for rapid decisions.
