Details Title: Fin220 Description: Chapter 3: Trading Securities Total Flash Cards: 32 Created: 10/01/2008 10:05:25		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Finance Flashcards
Cards in this set: Term Float Definition A term for selling new securities Term Primary Market Definition Where new issues of securities are sold by investment bankers Term Secondary Market Definition Purchase and sale of previously issued securities Term Initial Public Offering (IPO) Definition When private companies become public and sell stock for the first time Term Seasoned New Issue Definition Offered by a company who already has floated equity Term Secondary Offering Definition Has all the characteristics of a primary market issue but is a secondary market transaction Term Public Offering Definition Issue of bonds to general public that can be bought/sold on secondary market Term Private Placement Definition Bond issue sold to a few intitutional investors and held to maturity Term Underwriting Definition Public offerings of stocks and bonds are marketed via an underwriting by Investment Bankers Term Investment Bankers Definition Marketers of securities for large investment institutes Term Underwriting Syndicate Definition A group 0f investment bankers that share responsibility for stock issue Term Prospectus Definition When statement is approved and finalized, prices are set Term Direct Search Market Definition Buyers and sellers must seek each other out directly, sporadic participation, low priced non standard goods Term Brokered Market Definition Sufficient market activity for intermediary brokers to match buyers and sellers Term Block Transactions Definition Large trades that take place outside of regular exchanges Term Dealer Markets Definition Specialized trading in markets where a particular asset is traded frequently Term Auction Markets Definition All transactions occur at one place to bid or offer a good (Stock exchanges) Term Bid Price Definition The price buyers are willing to pay Term Ask Price Definition The price sellers are willing to sell for Term Stop-loss orders Definition Stock is automatically sold if it hits a certain price Term Over the Counter (OTC) Markets Definition Dealer markets Term Electronic Communication Networks (ECNs) Definition Private computer networks that directly link buyers to sellers Term Specialist (registered traders) Definition Each security in a stock exchange is managed by a specialist Term Desk Traders Definition Make trades for clients only Term Street Name Definition Broker holds securities registered in the firms own name on behalf of the client Term Stock Exchange Definition Facility for members to trade securities, only members can trade there Term Nasdaq Stock Market Definition Contains 3200 firms and devided into two sectors 1. Nasdaq national market 2. Nasdaq smallcap market Term American Stock Exchange (AMEX) Definition Trades younger and smaller firms than the NYSE Term Program Trade Definition Purchase or sale of an entire portfolio of stocks Term Discretionary Account Definition Brokers make all buy and sell decisions on the customers behalf Term Bid-asked Spread Definition Implicit cost of trading Term Short Sale Definition Selling first to buy back shares at a lower price later