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The Corporation

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					The Corporation

  2.2 pages 42-45
• Capital – money used by a company for
  start-up costs
• Stockholder – people who buy shares of
  stock in a company; they are part owners
• Primary capital market
  – A corporation sells stock directly to investors
  – Like buying a new car from the company


• Secondary capital market
  – Stockholders sell shares to each other
  – Like buying a used car
• IPO – initial public offering
   – New, small companies
   – Risky investment



•Exchanges – auction markets
   -New York Stock Exchange (NYSE) (Wall Street)
   -American Stock Exchange (AMEX)
• Over-the-Counter (OTC)
   – National Association of Securities Delaers
     Automated Quotes (NASDAQ)


Stockbroker – a person who helps others buy & sell stocks
-Advice can be useful
-Earn commission fees
-Be careful about choosing a stockbroker
• Securities and Exchange Commission
  (SEC)
  – Policeman of the securities industry
  – Establishes and enforces regulations
  – Protect the public from unfair practices

				
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