1. Securities Markets Chapter 6

2. Markets Goods Services Ownership of assets Risk exposure

3. Good Markets Availability of information Liquidity –Marketability –Depth Transactions costs

4. Primary and Secondary Markets Primary Markets –Market for new issues Secondary Markets –Trading among investors

5. Primary Markets T-bills, notes and bonds –Auctions Municipal bonds –Underwriting Competitive Negotiated –Private placement Corporate bonds –Shelf registration

6. Primary Markets Corporate stock –Seasoned equity offering –IPO Underwriting structure –Lead underwriter –Underwriting group –Selling group

7. Secondary Markets Exchanges and OTC Auction versus Dealer Exlcusive dealer Call versus continuos markets Third and Fourth markets

8. Brokers and dealers Specialist Other members –Commission brokers –Floor brokers –Registered traders

9. Listing requirements NYSE –Market cap > 100 m NASDAQ (NMS) –Market cap > 10 m

10. Types of orders Market order Limit order Stop order

11. Margin trading Margin = Equity Initial and mainatenance margins

12. Shortselling Speculating on price declines Call loan Margin requirements Up tick requirement