SlideShare ist ein Scribd-Unternehmen logo
1 von 10
Downloaden Sie, um offline zu lesen
Security Markets
Security Markets
• There are two types of security markets
• Primary markets
• Secondary markets
• Primary market: a market for new issues of
securities
• Secondary market: Trading of already issued
securities among investors occurs in the
secondary market
Primary Market
Following are example of primary issues:
• 1. IPO: (initial public offering) refers to stock
of company being offered to general public for
the first time
• 2. Seasoned issue: new issues are offered by
companies that already have floated equity
Primary issues
• Companies may choose to sell securities
either through public offering or private
placement.
• In private placement, the securities are
offered to a some wealthy individuals or
selected financial institutions.
Advantages of Private Placement
• Registration of the securities with SECP is not
required
• Funds can be quickly raised with private
placements, IPOs takes up to 4 months
• However, PP cannot be traded on stock
exchange and thus have less liquidity
• Because of illiquidity, higher rate of return is
paid to investors
How securities are sold in IPOs
• Securities are sold to general public with the help of
investment banker
• Investment banker helps companies in IPOs with their
advice, underwriting and distribution of securities
• Investment banker underwrites the new securities by
purchasing the securities from the issuing company
and assumes the risk of selling to general public. Such
agreement is called firm commitment
• An alternative to firm commitment is best effort
agreement where the IB does not purchase the
securities, rather tries his best to sell securities at good
price
Secondary Market
• The trading of already issued securities takes
place in secondary market
• Secondary markets helps the primary markets
as they increase the liquidity of existing
securities
• Secondary markets exists for trading of
common stocks, bonds, and puts and calls,
• Secondary markets include brokers market,
dealers markets
Brokers market
• This is also called stock exchange or
• It is an association of brokers and works like
an auction market
• All investor must deal through brokers
• No investors is allowed to directly buy or sell
shares from/to other investors
• Brokers charge commission on transactions
they make for their clients
NASDAQ
• National Association of Security Market
Dealers is a dealers market
• Unlike brokers, dealers(also called market
makers) buy and sell securities for themselves
• Every market maker deals in number of
securities and keeps a specific quantity of a
given security
• He stands to buy and sell a given security at
the same time
NASDAQ
• National Association of Security Market
Dealers is a dealers market
• Unlike brokers, dealers(also called market
makers) buy and sell securities for themselves
• Every market maker deals in number of
securities and keeps a specific quantity of a
given security
• He stands to buy and sell a given security at
the same time

Weitere ähnliche Inhalte

Was ist angesagt? (20)

PRIMARY MARKET PPT
PRIMARY MARKET PPTPRIMARY MARKET PPT
PRIMARY MARKET PPT
 
Secondary market ppt
Secondary market pptSecondary market ppt
Secondary market ppt
 
Capital market instruments
Capital market instrumentsCapital market instruments
Capital market instruments
 
Capital market
Capital marketCapital market
Capital market
 
Bond investment analysis
Bond investment analysisBond investment analysis
Bond investment analysis
 
financial market
 financial market financial market
financial market
 
Capital Market
Capital MarketCapital Market
Capital Market
 
Derivatives market
Derivatives marketDerivatives market
Derivatives market
 
Primary market
Primary marketPrimary market
Primary market
 
New issue market
New issue marketNew issue market
New issue market
 
International financial market & instruments module 3
International financial market & instruments   module 3International financial market & instruments   module 3
International financial market & instruments module 3
 
PRIMARY MARKET
PRIMARY MARKETPRIMARY MARKET
PRIMARY MARKET
 
Introduction to Financial Markets
Introduction to Financial MarketsIntroduction to Financial Markets
Introduction to Financial Markets
 
Otcei
OtceiOtcei
Otcei
 
Capital market ppt
Capital market pptCapital market ppt
Capital market ppt
 
Financial derivatives ppt
Financial derivatives pptFinancial derivatives ppt
Financial derivatives ppt
 
secondary market ppt.
secondary market ppt.secondary market ppt.
secondary market ppt.
 
Primary and Secondary Markets
Primary and Secondary MarketsPrimary and Secondary Markets
Primary and Secondary Markets
 
Stock broker
Stock brokerStock broker
Stock broker
 
Derivatives market in india
Derivatives market in indiaDerivatives market in india
Derivatives market in india
 

Ähnlich wie Security Markets

Capital Market Operations an Introduction.pptx
Capital Market Operations an Introduction.pptxCapital Market Operations an Introduction.pptx
Capital Market Operations an Introduction.pptxMohanT33
 
strategic management module and handaout
strategic management module and handaoutstrategic management module and handaout
strategic management module and handaoutWataniBidami
 
securities_firms_and_investment_banks.pptx
securities_firms_and_investment_banks.pptxsecurities_firms_and_investment_banks.pptx
securities_firms_and_investment_banks.pptxMoniqueVilla3
 
Capital market(alok singh kanpur)
Capital market(alok singh kanpur)Capital market(alok singh kanpur)
Capital market(alok singh kanpur)Alok Singh
 
Investment Management Share/Stock Market
Investment Management Share/Stock MarketInvestment Management Share/Stock Market
Investment Management Share/Stock MarketDr. John V. Padua
 
0 capital market
0 capital market0 capital market
0 capital marketVinu Mathew
 
Cb123 basic ppt ch18
Cb123 basic ppt ch18Cb123 basic ppt ch18
Cb123 basic ppt ch18Eric
 
Meeting 3 - Mechanism of trading (Capital market)
Meeting 3 - Mechanism of trading (Capital market)Meeting 3 - Mechanism of trading (Capital market)
Meeting 3 - Mechanism of trading (Capital market)Albina Gaisina
 
Primary and Secondary market
Primary and Secondary market Primary and Secondary market
Primary and Secondary market Rohit Kumar
 
Gr xii-bs-ch-10-s2
Gr xii-bs-ch-10-s2Gr xii-bs-ch-10-s2
Gr xii-bs-ch-10-s2Baiju KT
 
Notes on indian financial markets final np
Notes on indian financial markets final  np Notes on indian financial markets final  np
Notes on indian financial markets final np Guni Suni
 
New issue market ppt
New issue market pptNew issue market ppt
New issue market pptNandhakumar M
 
Financial Management Lecture 2 NUML University
Financial Management Lecture 2 NUML UniversityFinancial Management Lecture 2 NUML University
Financial Management Lecture 2 NUML Universitypal83111
 
How to make money by Investing And trading.pptx
How to make money by Investing And trading.pptxHow to make money by Investing And trading.pptx
How to make money by Investing And trading.pptxdevanarayanobx1b
 
Investment Banking.ppt
Investment Banking.pptInvestment Banking.ppt
Investment Banking.pptRazaAli532361
 

Ähnlich wie Security Markets (20)

Capital Market Operations an Introduction.pptx
Capital Market Operations an Introduction.pptxCapital Market Operations an Introduction.pptx
Capital Market Operations an Introduction.pptx
 
strategic management module and handaout
strategic management module and handaoutstrategic management module and handaout
strategic management module and handaout
 
securities_firms_and_investment_banks.pptx
securities_firms_and_investment_banks.pptxsecurities_firms_and_investment_banks.pptx
securities_firms_and_investment_banks.pptx
 
Financial services lecture notes
Financial services lecture notesFinancial services lecture notes
Financial services lecture notes
 
Capital market(alok singh kanpur)
Capital market(alok singh kanpur)Capital market(alok singh kanpur)
Capital market(alok singh kanpur)
 
unit 1-IAPM.pptx
unit 1-IAPM.pptxunit 1-IAPM.pptx
unit 1-IAPM.pptx
 
Fm unit-1-sapm
Fm unit-1-sapmFm unit-1-sapm
Fm unit-1-sapm
 
Investment Management Share/Stock Market
Investment Management Share/Stock MarketInvestment Management Share/Stock Market
Investment Management Share/Stock Market
 
0 capital market
0 capital market0 capital market
0 capital market
 
Cb123 basic ppt ch18
Cb123 basic ppt ch18Cb123 basic ppt ch18
Cb123 basic ppt ch18
 
Financial markets
Financial marketsFinancial markets
Financial markets
 
Security market
Security marketSecurity market
Security market
 
Meeting 3 - Mechanism of trading (Capital market)
Meeting 3 - Mechanism of trading (Capital market)Meeting 3 - Mechanism of trading (Capital market)
Meeting 3 - Mechanism of trading (Capital market)
 
Primary and Secondary market
Primary and Secondary market Primary and Secondary market
Primary and Secondary market
 
Gr xii-bs-ch-10-s2
Gr xii-bs-ch-10-s2Gr xii-bs-ch-10-s2
Gr xii-bs-ch-10-s2
 
Notes on indian financial markets final np
Notes on indian financial markets final  np Notes on indian financial markets final  np
Notes on indian financial markets final np
 
New issue market ppt
New issue market pptNew issue market ppt
New issue market ppt
 
Financial Management Lecture 2 NUML University
Financial Management Lecture 2 NUML UniversityFinancial Management Lecture 2 NUML University
Financial Management Lecture 2 NUML University
 
How to make money by Investing And trading.pptx
How to make money by Investing And trading.pptxHow to make money by Investing And trading.pptx
How to make money by Investing And trading.pptx
 
Investment Banking.ppt
Investment Banking.pptInvestment Banking.ppt
Investment Banking.ppt
 

Mehr von ASAD ALI

C++ For Quantitative Finance
C++ For Quantitative FinanceC++ For Quantitative Finance
C++ For Quantitative FinanceASAD ALI
 
Development of the islamic banking system
Development of the islamic banking systemDevelopment of the islamic banking system
Development of the islamic banking systemASAD ALI
 
Riba, gharar and qimar
Riba, gharar and qimarRiba, gharar and qimar
Riba, gharar and qimarASAD ALI
 
Islmaic law of contract class 4 aug
Islmaic law of contract   class 4 augIslmaic law of contract   class 4 aug
Islmaic law of contract class 4 augASAD ALI
 
Islamic law of contract session 2
Islamic law of contract session 2Islamic law of contract session 2
Islamic law of contract session 2ASAD ALI
 
Islaami bankari ki_bunyaden
Islaami bankari ki_bunyadenIslaami bankari ki_bunyaden
Islaami bankari ki_bunyadenASAD ALI
 
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...ASAD ALI
 
Asaan usool e fiqh
Asaan usool e fiqhAsaan usool e fiqh
Asaan usool e fiqhASAD ALI
 
Micro Biology Food Safety
Micro Biology Food SafetyMicro Biology Food Safety
Micro Biology Food SafetyASAD ALI
 
Perception, Attitudes personality
Perception, Attitudes personalityPerception, Attitudes personality
Perception, Attitudes personalityASAD ALI
 
Positive Behaviour Support
Positive Behaviour SupportPositive Behaviour Support
Positive Behaviour SupportASAD ALI
 
Mudarabah by muhammad zubair usmani
Mudarabah by muhammad zubair usmaniMudarabah by muhammad zubair usmani
Mudarabah by muhammad zubair usmaniASAD ALI
 
Investment Decision Process
Investment Decision ProcessInvestment Decision Process
Investment Decision ProcessASAD ALI
 
Diminishing musharakah mbl
Diminishing musharakah mblDiminishing musharakah mbl
Diminishing musharakah mblASAD ALI
 
Type of Mutual Funds
Type of Mutual FundsType of Mutual Funds
Type of Mutual FundsASAD ALI
 
mutual funds
mutual fundsmutual funds
mutual fundsASAD ALI
 
Investment Securities
Investment SecuritiesInvestment Securities
Investment SecuritiesASAD ALI
 
Investment Securities. alternatives & attributes
Investment Securities. alternatives & attributesInvestment Securities. alternatives & attributes
Investment Securities. alternatives & attributesASAD ALI
 
Risk and Return
Risk and ReturnRisk and Return
Risk and ReturnASAD ALI
 

Mehr von ASAD ALI (20)

C++ For Quantitative Finance
C++ For Quantitative FinanceC++ For Quantitative Finance
C++ For Quantitative Finance
 
Development of the islamic banking system
Development of the islamic banking systemDevelopment of the islamic banking system
Development of the islamic banking system
 
Riba 1
Riba 1Riba 1
Riba 1
 
Riba, gharar and qimar
Riba, gharar and qimarRiba, gharar and qimar
Riba, gharar and qimar
 
Islmaic law of contract class 4 aug
Islmaic law of contract   class 4 augIslmaic law of contract   class 4 aug
Islmaic law of contract class 4 aug
 
Islamic law of contract session 2
Islamic law of contract session 2Islamic law of contract session 2
Islamic law of contract session 2
 
Islaami bankari ki_bunyaden
Islaami bankari ki_bunyadenIslaami bankari ki_bunyaden
Islaami bankari ki_bunyaden
 
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...
 
Asaan usool e fiqh
Asaan usool e fiqhAsaan usool e fiqh
Asaan usool e fiqh
 
Micro Biology Food Safety
Micro Biology Food SafetyMicro Biology Food Safety
Micro Biology Food Safety
 
Perception, Attitudes personality
Perception, Attitudes personalityPerception, Attitudes personality
Perception, Attitudes personality
 
Positive Behaviour Support
Positive Behaviour SupportPositive Behaviour Support
Positive Behaviour Support
 
Mudarabah by muhammad zubair usmani
Mudarabah by muhammad zubair usmaniMudarabah by muhammad zubair usmani
Mudarabah by muhammad zubair usmani
 
Investment Decision Process
Investment Decision ProcessInvestment Decision Process
Investment Decision Process
 
Diminishing musharakah mbl
Diminishing musharakah mblDiminishing musharakah mbl
Diminishing musharakah mbl
 
Type of Mutual Funds
Type of Mutual FundsType of Mutual Funds
Type of Mutual Funds
 
mutual funds
mutual fundsmutual funds
mutual funds
 
Investment Securities
Investment SecuritiesInvestment Securities
Investment Securities
 
Investment Securities. alternatives & attributes
Investment Securities. alternatives & attributesInvestment Securities. alternatives & attributes
Investment Securities. alternatives & attributes
 
Risk and Return
Risk and ReturnRisk and Return
Risk and Return
 

Kürzlich hochgeladen

UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17Celine George
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17Celine George
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfYu Kanazawa / Osaka University
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...raviapr7
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 

Kürzlich hochgeladen (20)

UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 

Security Markets

  • 2. Security Markets • There are two types of security markets • Primary markets • Secondary markets • Primary market: a market for new issues of securities • Secondary market: Trading of already issued securities among investors occurs in the secondary market
  • 3. Primary Market Following are example of primary issues: • 1. IPO: (initial public offering) refers to stock of company being offered to general public for the first time • 2. Seasoned issue: new issues are offered by companies that already have floated equity
  • 4. Primary issues • Companies may choose to sell securities either through public offering or private placement. • In private placement, the securities are offered to a some wealthy individuals or selected financial institutions.
  • 5. Advantages of Private Placement • Registration of the securities with SECP is not required • Funds can be quickly raised with private placements, IPOs takes up to 4 months • However, PP cannot be traded on stock exchange and thus have less liquidity • Because of illiquidity, higher rate of return is paid to investors
  • 6. How securities are sold in IPOs • Securities are sold to general public with the help of investment banker • Investment banker helps companies in IPOs with their advice, underwriting and distribution of securities • Investment banker underwrites the new securities by purchasing the securities from the issuing company and assumes the risk of selling to general public. Such agreement is called firm commitment • An alternative to firm commitment is best effort agreement where the IB does not purchase the securities, rather tries his best to sell securities at good price
  • 7. Secondary Market • The trading of already issued securities takes place in secondary market • Secondary markets helps the primary markets as they increase the liquidity of existing securities • Secondary markets exists for trading of common stocks, bonds, and puts and calls, • Secondary markets include brokers market, dealers markets
  • 8. Brokers market • This is also called stock exchange or • It is an association of brokers and works like an auction market • All investor must deal through brokers • No investors is allowed to directly buy or sell shares from/to other investors • Brokers charge commission on transactions they make for their clients
  • 9. NASDAQ • National Association of Security Market Dealers is a dealers market • Unlike brokers, dealers(also called market makers) buy and sell securities for themselves • Every market maker deals in number of securities and keeps a specific quantity of a given security • He stands to buy and sell a given security at the same time
  • 10. NASDAQ • National Association of Security Market Dealers is a dealers market • Unlike brokers, dealers(also called market makers) buy and sell securities for themselves • Every market maker deals in number of securities and keeps a specific quantity of a given security • He stands to buy and sell a given security at the same time