Secondary Equity Markets

Secondary Equity Markets - 4-1Secondary Equity...

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Unformatted text preview: 4-1Secondary Equity Markets•Basic Trading Systems –Pure Auction Market: Buyers and sellers submit bid-and-ask prices (buy and sell orders) for a given stock to a central location where the orders are matched by a broker who does not own the stock but acts as a facilitating agent (It is also known as order-driven market)–Dealer Market: Individual dealers provide liquidity for investors by buying and selling the shares of stock for themselves (as known as 4-2Secondary Equity Markets•Call Versus Continuous Markets–Call markets trade individual stocks at specified times to gather all orders and determine a single price to satisfy the most orders–Used for opening prices on NYSE if orders build up overnight or after trading is suspended–In a continuous market, trades occur at any 4-3Secondary Equity Markets Classification•Primary Listing Markets–NYSE, AMEX, Tokyo, and LSE•Regional Markets–Chicago, San Francisco, Boston, Osaka, Nagoya, Dublin, Cincinnati•Third Market Dealers/Brokers...
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Secondary Equity Markets - 4-1Secondary Equity...

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