secondary market

Examples of secondary market in the following topics:

• Secondary Market Organizations

  • The secondary market is the financial market in which previously issued instruments such as stock, bonds, options, and futures are bought and sold.
  • The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.
  • After the initial issuance, investors can purchase from other investors in the secondary market.
  • The major stock exchanges are the most visible example of liquid secondary markets - in this case, for stocks of publicly traded companies.
  • Exchanges such as the New York Stock Exchange, Nasdaq, and the American Stock Exchange provide a centralized, liquid secondary market for the investors who own stocks that trade on those exchanges.

• Types of Stock Market Transactions

  • Types of stock market transactions include IPO, secondary market offerings, secondary markets, private placement, and stock repurchase.
  • A secondary market offering, according to the U.S.
  • After the initial issuance, investors can purchase from other investors in the secondary market.
  • In the secondary market, securities are sold by and transferred from one investor or speculator to another.
  • It is therefore important that the secondary market be highly liquid.

• Types of Financial Markets

  • Financial markets are of many types, including general and specialized; capital and money; and primary and secondary.
  • Examples of financial markets include capital markets, derivative markets, money markets, and currency markets.
  • There are many different ways to divide and classify financial markets: for example, into general markets and specialized markets, capital markets and money markets, and primary and secondary markets.
  • A key division within the capital markets is between the primary markets and secondary markets.
  • Secondary markets are for the secondary trade of securities, providing a continuous and regular market for the buying and selling of securities.

• NYSE

  • The New York Stock Exchange, commonly referred to as the NYSE, is a stock exchange, or a secondary market.
  • After the initial issuance, investors can purchase from other investors in secondary markets like the NYSE.
  • Secondary markets can be further subdivided into auction or dealer markets, typified by the mode of transactions.
  • The NYSE's biggest competitor is NASDAQ; both are major secondary markets vying for large and profitable companies to list on their exchange.
  • Buyers and sellers meet and engage in face-to-face transactions at the NYSE, which is an auction-style secondary market.

• Chapter Questions

  • Why would people deposit their savings into financial intermediaries, instead of directly investing in the financial markets?
  • Why did the financial markets in the modern world become international?
  • Distinguish between a money-market mutual fund and a money-market deposit account.

• Types of Market Organizations

  • The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.
  • After the initial issuance, investors can purchase from other investors in the secondary market.
  • The major stock exchanges are the most visible example of liquid secondary markets - in this case, for stocks of publicly traded companies.
  • Exchanges such as the New York Stock Exchange, Nasdaq, and the American Stock Exchange provide a centralized, liquid secondary market for the investors who own stocks that trade on those exchanges.
  • The New York Stock Exchange is a notable secondary market that is structured as an auction market.

• Answers to Chapter 2 Questions

  • Primary market is for newly issued stocks and bonds, while the secondary markets allow investors to buy or sell their existing stocks or bonds.
  • Dealers usually operate in the primary market, while the secondary market is an exchange.
  • Presence of a secondary market increases liquidity.
  • Money market instruments include: U.S.
  • Money market is for securities with a maturity less than one year, while the capital market includes securities with maturities over one year.

• Seasoned Equity Offering

  • When more shares are put into the market, the percent of total ownership that share represents drops.
  • It is important not to confuse a SEO with a secondary market offering.
  • A SEO is the increase of the number of shares outstanding in the market in which the IPO took place, the primary market.
  • A secondary market offering broadly means that shares are sold, but not by the company through the registration of new shares.
  • Contrast a seasoned equity offering with an initial public offering and a secondary market offering

• Securities Exchange Act of 1934

  • The Securities Exchange Act of 1934 is a law governing the secondary trading of securities, financial markets and their participants.
  • Trillions of dollars are made and lost each year through trading in the secondary market.
  • ATS acts as a niche market, a private pool of liquidity.
  • The '34 Act extends this requirement to securities traded in the secondary market.
  • Define how the Securities Exchange Act of 1934 regulates the US securities markets

• Trends in Markets

  • These trends are classified as secular for long-term frames, primary for medium-term frames, and secondary for short-term frames.
  • The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities .
  • A secular bear market consists of smaller bull markets and larger bear markets, while a secular bull market consists of larger bull markets and smaller bear markets.
  • A bear market is a general decline in the stock market over a period of time.
  • A market top (or market high) is usually not a dramatic event.