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Securities Markets
Course: Investments: Debt, Equity And Derivatives (FIN3144)
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Students shared 11 documents in this course
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Securities Markets
●Securities markets are financial markets where securities, such as stocks and
bonds, are bought and sold.
●Securities markets provide a platform for companies to raise capital by issuing
securities, and for investors to buy and sell securities as a means of earning a
return or managing risk.
●There are various types of securities markets, including primary markets, where
securities are first issued and sold to investors, and secondary markets, where
securities are bought and sold after their initial issuance.
Primary Markets
●Primary markets refer to the initial sale of securities by a company to the public.
●Companies may issue securities in primary markets as a means of raising capital
to fund operations or growth.
●Primary markets can include initial public offerings (IPOs), in which a company
sells securities to the public for the first time, and follow-on offerings, in which a
company sells additional securities to the public after its initial IPO.
Secondary Markets
●Secondary markets refer to the buying and selling of securities after their initial
issuance in primary markets.
●Securities traded in secondary markets are typically bought and sold by investors,
rather than being issued by companies.
●Secondary markets can include exchanges, such as the New York Stock
Exchange (NYSE) or the Nasdaq, as well as over-the-counter (OTC) markets,
where securities are traded through a network of dealers rather than on a
centralized exchange.
Trading
