MGMT 1 Chapter Notes - Chapter 19: Insider Trading, Common Stock, Nyse Euronext
Document Summary
Using securities markets for financing and investing (chapter 19) A company is abt to issue its ipo. Ipo: first offering of a company"s stock; revenues go to issuing company. Secondary markets: handle trading of securities btwn investors w/ proceeds of sale going to seller. Stock exchange: stock is just bought and sold. Nasdaq: u. s. ; electronic market; for stocks that can"t achieve a level comparable to stocks listed in new york stock exchange. Over-the-counter (otc): risk is extremely high; need to be careful with these. Attempt to another big stop stock market crash. Rules against insider trading (using secret info you received to buy or sell stock before info goes public): made this illegal. Dividends: distribution of after-tax profits to owners of stock, usually paid quarterly; may be paid annually o o. Stock can be callable, convertible, and/or cumulative: preferred stock (has special qualities) Common stock: most basic form; holders have right to vote.
