Security Markets

2. trading: computer triggers are established in which large-volume trades can be initiated by institutional investors
3. sheets: electronic quotation service that gathers and publishes bid and ask quotation prices
4. market: occurs when prices respond to new information, when each successive trade is made at a price close to the preceding price
7. dot: allows NYSE member firms to electronically transmit all market and limit orders directly to the specialist at the trading post or the member trading booth
10. banker: serves as the middleman in the process of raising funds
11. guarantee the investment banking firm gives the selling firm to purchase its securities at a fixed price
12. stock market: first electronic stock market listing over 5000 companies
14. option: gives the owner the right to buy 100 shares of the underlying common stock at a set price for a certain period
15. brokers and independent brokers: two types of floor brokers
17. trading: rely on mathematical algorithms to trigger the trades without any human interaction
18. markets: markets for existing assets that can be traded between investors i.e. NYSE
23. public offering: bring private companies public for the first time
24. brokers and specialists: the two types of members at the NYSE
25. efforts: basis where the issuing firm assumes the risk and simply takes back an securities not sold after a fixed period

1. a way of exchanging assets
3. markets: distinguished by the flow of funds between the market participants
5. Advisor Act of 1940: set up to protect the public from unethical investment advisors
6. exchange: formed in 2005 as an ECN and was granted exchange status by the SEC
8. book: a database that keeps track of limit orders and market orders for the specialist
9. Investor Protection Corporation: established to oversee liquidation of brokerage firms and to insure investors accounts to a maximum value of $500,000
10. Exchange: founded to create a 24 hour electronic market for energy contracts
13. directly: where the company sells its stock to the public without the help of an investment bank
16. the counter bulletin board: electronic trading service provided by the NASD that offers traders and investors up-to-the-minute quotes, last-price sales, and volume information for equity securities traded over the counter
19. traded funds: closed-end funds and structured products i.e. Standard and Poors 500 index and the DJIA
20. York Stock Exchange: a stock exchange in New York that began as a physical location
21. breakers: will shut down the markets or a stock in the event that it takes a pre-defined drop
22. crash: rapid, deep, and volatile fall in security prices occurring within an extremely short time period