Is an initial public offering an example of a primary or a secondary market transaction?
(Initial Public Offering) Market
The market for stocks of companies that are in the process of going public
A primary market is the market in which corporations raise capital by issuing new securities. An
initial public offering is a stock issue in which
Indicate whether the following instruments are examples of money market or capital market securities
Money market
The financial markets in which funds are borrowed or loaned for short periods (less than one year)
Capital Market
The financial markets for stocks and for intermediate- or long-term debt (one year or longer)
Money market
The financial markets in which funds are borrowed or loaned for short periods (less than one year)
Capital Market
The financial markets for stocks and for intermediate- or long-term debt (one year or longer)
Money Market VS Capital Market
U.S. Treasury bills- Money Market
Long-term corporate bonds- Capital Market Securities
Common stocks- Capital Market Securities
Preferred stocks- Capital Market Securities
Dealer commercial paper- Money Market
Money market
Dealer Market
Includes all facilities that are needed to conduct security transactions not conducted on the physical location exchanges
Physical location exchanges
Formal organizations having tangible physical locations that conduct auction markets in designated ("listed") securities
Identify and briefly compare the two leading stock exchanges in the United States today.
FIGURE IT OUT
Briefly explain what is meant by the term Efficiency Continuum
there is an efficiency continuum with the market for some companies' stock being highly efficient and the market for other stocks being highly inefficient. The key factor is the size of the company- the larger the firm, the more analysts tend to follow it