Primary and Secondary Markets

What are stocks?

• Shares of ownership in a corporation.
• Shares of trading in a corporation.
• Bonds with potential to make money.
• Bonds that are traded.

Why do companies issue stocks?

• To create and investment opportunity into other businesses.
• To increase employee cooperation and an operating level.
• To be traded individually
• To raise money for economic investment and to fund operating costs.

What is an IPO?

• Initial Polling Office
• Initial Public Offering
• International Public Office
• Increasing Public Opportunity

Who buys stock at an IPO?

• Investment bankers
• Individuals
• Corporations
• Small businesses

What do investment bankers do after their purchase at an IPO?

• Hold onto it long term
• Sell it to their families
  
• Sell it to their best customers
• Hold onto it until the next IPO

What is a financial institution?

• A firm that makes money off of selling products
• An intermediary that helps channel savings into economic investments
• A corporation that typically falls into debt
• A primary source of selling company investment strategy

Define personal investment

• Investing in a friend's business
• Buying a house
• Buying goods and services at a good price
• Putting away money hoping to make money off of it in the long term

What are bonds?

• Certificates of indebtedness
• Shares of publicly traded companies
• Bailing people out of tough situations
• Certificates of profit

Stocks are:

• an example of debt financing
• shares of ownership in a corporation
• agreements to repay money at no interest
• agreements to repay money at fixed interest

Bonds are:

• an example of equity financing
• shares of ownership in a company
• agreements to repay money borrowed with no interest
• certificates of indebtedness, obligating borrowers to repay borrowed money and pay interest