FIN 322 Study Guide - Final Guide: Private Equity, Primary Market, Secondary Market
Document Summary
Private equity companies: organizations that operate much like hedge funds, but rather than purchasing some of the stock of a firm, private equity players buy and then manage entire firms. Physical location exchanges are formal organizations having tangible physical locations that conduct auction markets in designated ("listed") securities. Otc market is a large collection of brokers and dealers, connected electronically by telephones and computers, that provides for trading in unlisted securities. Dealer markets includes all facilities that are needed to conduct security transactions, but the transactions aren"t made on the physical location exchanges. Privately owned (i. e. , closely held) corporations have closely held stock, meaning their common stocks aren"t actively traded but instead owned by relatively few people: common among small companies publicly owned corporations. Publicly held stock: stocks are often owned by thousands of investors, most of whom aren"t active in management, typically, larger companies #1 - secondary market outstanding shares of established publicly owned companies that are traded.
