Understanding Securities Markets: Terms and Definitions, Quizzes of Investment Theory

Download Understanding Securities Markets: Terms and Definitions and more Quizzes Investment Theory in PDF only on Docsity! TERM 1 primary market DEFINITION 1 market for new issues of securities TERM 2 secondary market DEFINITION 2 market for already existing securities TERM 3 private placement DEFINITION 3 primary offerings in which shares are sold directly to a small group of institutional or wealthy investors TERM 4 initial public offering (IPO) DEFINITION 4 first sale of stock by a formerly private company TERM 5 underwriters DEFINITION 5 underwriters purchase securities from the issuing company and resell them to the public TERM 6 prospectus DEFINITION 6 a descriptive of the firm and the security it is issuing TERM 7 seasoned equity offering DEFINITION 7 the sale of additional shares infirms that already are publicly traded TERM 8 dealer markets DEFINITION 8 markets in which traders specializing in particular assets buy and sell for their own accounts TERM 9 auction markets DEFINITION 9 a market where all traders meet at one place to buy or sell an asset TERM 10 bid price DEFINITION 10 the price at which a dealer or other trader is willing to purchase a security TERM 21 algorithmic trading DEFINITION 21 the use of computer programs to make rapid trading decisions TERM 22 high-frequency trading DEFINITION 22 a subset of algorithmic trading that relies on computer programs to make very rapid trading decisions TERM 23 blocks DEFINITION 23 large transactions in which at least 10000 shares of stock are bought or sold TERM 24 dark pools DEFINITION 24 electronic trading networks where participants can anonymously buy or sell large blocks of securities TERM 25 margin DEFINITION 25 describes securities purchased with money borrowed in part from a broker. The margin is the net worth of the investors account TERM 26 short sale DEFINITION 26 the sale of shares not owned by the investor but borrowed through a broker and later purchased to replace the loan TERM 27 inside information DEFINITION 27 nonpublic knowledge about a corporation possessed by corporative officers, major owners, or other individuals with privileged access to information about the firm