RSM100Y1 Chapter Notes - Chapter 19: Nyse American, Preferred Stock, Financial Industry Regulatory Authority

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27 Dec 2013
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Investment banking: investment banker: any financial institution engaged in purchasing and reselling new stocks and bonds, most common investment banking services include: Advise the company on the timing and financial terms for the new issue. By underwriting (buying) the new securities, investment bankers bear some of the risk of issuing the new security. They create the distribution network that moves the new securities through groups of other banks and brokers into the hands of individual investors. Secondary securities market: the sale and purchase of previously issued stocks and bonds. Individuals and other companies buy a firms common stock in the hope that the stock will increase in value, affording them a capital gain, or will provide dividend income. Used as a comparison indicator because for successful companies, the market value is usually greater than the book value. Investment traits of common stock: common stocks are among the riskiest of all securities (because of uncertainties)

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