Financial Markets & Participants(4 pages)
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Financial Markets & Participants
- Lecture number:
- Lecture Note
- University of Texas at Austin
- Fin 320f - Foundations of Finance
Unformatted text preview:
Lecture 3 Outline of Current Lecture Stock exchange vs OTC market Primary vs Secondary markets The IPO Process Capital market vs. money market Broker vs. dealer Financial intermediaries Best-effort basis SEC regulation Current Lecture Equity market vs. debt market Stock market vs. bond market Stock exchange vs. over-the-counter market Primary market vs. secondary market Capital market vs. money market A stock exchange (market) is a physical or virtual place where securities are traded The New York Stock Exchange is an organized, physical exchange The Nasdaq is an organized, virtual exchange The OTC market is not an exchange Trading is directly between buyer and seller Examples: Pink Sheets, OTC Bulletin Board During eBay’s 1998 IPO, it offered 3.5M (9%) of its shares to the public at $18 per share In 1999, eBay offered an additional 6.5M shares to the public at $270 per share 4.25M shares were offered by the company 2.25M shares were offered by insiders On Jan 30, 2015, eBay closed at $53.00 Long-term financial instruments trade in capital markets Short-term financial instruments trade in money markets FIN 320F
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