Chapter 2

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					 Chapter 2


Markets and
Transactions
            Securities Markets

   Primary Market
   IPO
   Prospectus
   Red herring – available to prospective
    investors during the wait for SEC approval
   Investment banker
       underwriting
                Exchanges

   New York Stock Exchange – 2,700
   American – second largest, 700 stocks
   NASDAQ -
   Options and Futures
   OTC
              Globalization

   International markets
   Foreign Securities
   ADRs – American Deposit Receipts
   Risk
   Currency
    Trading Hours and Regulation

   9:30-4:00 M-F
   After hours trading
   1933 Act – full disclosure
   1934 Act – established SEC
   Maloney Act – Self-regulation
   Insider Trading Act 1988
   Ethics
    Type of Security Transactions
   Long
   Short
   Margin
       Leverage
       Advantages and
        disadvantages
   Margin account
   Interest
   Margin Call

				
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