Primary Market The market for new issues of securities. A way to raise money for demanders of funds. Initial Public Offering Common stock shares being sold to the public for the first time. Firm that specializes in the sale of new securities to the public The process by which investment banks purchase on issue of securities from a firm and resell it to the public A group of investment banks that collectively issue a security New securities issues are sold directly to financial institutions, bypassing the open market. Market where existing securities are traded amount investors. Does not raise money for demanders of funds. The major secondary market for the trading of equity securities. Securities are traded electronically and in person on the “trading floor”. Fully electronic equity securities market. Home to a large number of technology companies. A decentralized market for securities not listed on an exchange. An individual who makes a market in a stock by buying from and selling to investors. A price‐weighted index of 30 large, well‐established companies that is sometimes used as a measure of stock market activity. An index that gives more important to high‐priced stocks than low‐price stocks. A capitalization‐weighted index of 500 large‐cap companies that is sometimes used as a measure of stock market activity. An index that gives more importance to companies with larger market capitalizations. Measures all common stocks traded on the NASDAQ stock exchange Russell 2000 ‐ Small‐Cap stocks S&P 400 ‐ Mid‐Cap stocks Wilshire 5000 ‐ Total US Stock Market Primarily a dealer‐to‐dealer market. Only a relatively small number of bonds are listed on exchanges DAX (Frankfurt) FTSE (London) NIKKEI (Tokyo) Investment Bank Underwrite Syndicate Private Placement Secondary Markets New York Stock Exchange NASDAQ Stock Market Over‐the‐counter (OTC) Market Market Maker Dow Jones Industrial Average (DJIA) Price‐Weighted Index Standard & Poor’s 500 Composite Index(S&P 500) Capitalization‐Weighted Index NASDAQ Composite Index Some other indexes of note Bond Market International Indexes