Understanding Securities Markets: Terms, Functions, and Advantages of Stocks and Bonds, Quizzes of Business Research Methods for Managers

Download Understanding Securities Markets: Terms, Functions, and Advantages of Stocks and Bonds and more Quizzes Business Research Methods for Managers in PDF only on Docsity! TERM 1 Securities markets DEFINITION 1 financial marketplaces for stocks and bonds and serve two primary functions: 1.Assist businesses in finding long-term funding to finance capital needs 2.Provide private investors a place to buy and sell securities such as stocks and bonds TERM 2 Primary markets DEFINITION 2 handle the sale of new securities TERM 3 Initial Public Offering (IPO) DEFINITION 3 The first offering of a companys stock TERM 4 Secondary markets DEFINITION 4 handle the trading of securities between investors with the proceeds of the sale going to the seller TERM 5 Stock Exchange DEFINITION 5 An organization whose members can buy and sell securities on behalf of companies and individual investors (NYSE Euronext) TERM 6 Over-the-Counter (OTC) Market DEFINITION 6 Provides companies and investors with a means to trade stocks not listed on the national securities exchanges TERM 7 NASDAQ DEFINITION 7 A telecommunications network that links dealers across the nation so they can exchange securities TERM 8 Securities and Exchange Commission (SEC) DEFINITION 8 The federal agency responsible for regulating the various stock exchanges; created in 1934 through the Securities and Exchange Act Requires full disclosure of financials for companies issuing stocks/bonds Prohibits insider trading TERM 9 Prospectus DEFINITION 9 A detailed registration statement that includes extensive economic and financial information that must be sent to prospective investors TERM 10 Stocks DEFINITION 10 Shares of ownership in a company