| Markets and Indexes | Prices and Orders | Dealers and Brokers | Offers | Investments |
|---|---|---|---|---|
|
What is the secondary market?
The market in which previously issued securities trade among investors.
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What is the bid price?
The price a dealer is willing to pay.
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What is the Securities and Exchange Commission (SEC)?
Federal regulatory agency charged with enforcing US securities laws and regulations.
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What is a prospectus?
Document prepared as part of a a security offering detailing a company's financial position, its operations, and investment plans for the future.
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What is to underwrite?
To assume the risk of buying newly issued securities from a company and reselling them to investors.
|
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What is the third market?
Off-exchange market for securities listed on an organized exchange.
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What is an ask price or the offer(ing price)?
The price at which a dealer is willing to sell.
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What is a dealer?
A trader who buys and sells securities from inventory.
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What is a seasoned equity offering (SEO)?
The sale of additional shares of stock by a company whose shares are already publicly traded.
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What is the underwriter spread?
Compensation to the underwriter, determined by the difference between the underwriter's buying price and offering price.
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What is a price-weighted index?
Stock market in which stocks are held in proportion to their share price.
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What is the spread?
The difference between the bid and ask prices.
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What is a broker?
An intermediary who arranges security transactions among investors.
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What is a rights offer(ing)?
A public issue of securities in which securities are first offered to existing shareholders.
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What is a syndicate?
A group of underwriters formed to share the risk and to help sell an issue.
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What is a value-weighted index?
Stock market index in which stocks are held in proportion to the aggregate market value.
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What is the inside quotes?
Highest bid quotes and lowest ask quotes offered by dealers for a security.
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What is the NYSE uptick rule?
Rule for short sales requiring that before a short sale can be executed, the last price change must be an uptick.
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What is a red herring?
A preliminary prospectus not yet approved by the SEC.
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What is firm commitment underwriting?
The type of underwriting in which the underwriter buys the entire issue, assuming full financial responsibility for any unsold shares.
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What is index staleness?
A condition that occurs when an index does not reflect all current price information because some of the stocks in the index have not traded recently.
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What is a limit order?
Customer order to buy or sell securities with a specified "limit" price. The order can be executed only at the limit price or better.
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What is the specialist's post?
Fixed place on the exchange floor where the specialist operates.
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What is a general cash offer?
An issue of securities offered for sale to the general public on a cash basis.
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What is Dutch auction underwriting or uniform price auction?
The type of underwriting in which the offer price is set based on competitive bidding by investors.
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