Securities: stocks & bonds (which represent a secured-asset-based claim on the part of investors) that can be bought and sold. Markets in which stocks & bonds are sold = securities market. Primary securities markets: the sale and purchase of newly issued stocks & bonds by rms or government. Investment banker: any nancial institution engaged in purchasing and reselling new stocks and bonds. Advise company on timing & nancial terms on new issue. By underwriting(buying) the new securities, they bear some risk. Create the distribution network that moves the new securities through others. Secondary securities market: the sale and purchase of previously issued stocks and bonds (represent a majority of securities traded) Each year, thousands of companies buy and sell stocks. Ppl buy a companies common shares in hope that it will rise and maybe gain dividend. Market value: the current price of one share of a stock in the secondary securities market; the real value of a share.