Primary Market
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Secondary Market
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1. It is where the new securities of companies are issued.
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1. It is where the already existing securities are traded.
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2. It is where new securities are created.
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2. It is where already held securities are traded by investors.
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24.
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How do security dealers earn their profits?
One of the ways how a security dealer earns profit is through frequent trading at bid and ask price thereby pocketing spread as trading profit. Other than this, being the specialist of securities, they also profit by trading on information not available to others.
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25.
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In what circumstances are private placements more likely to be used than public offerings?
Preparing a public issue is a time consuming affair. Therefore, a firm which is willing to buy securities and wishes to avoid the time and cost involved in preparing public offering, may issue shares privately
Ommaviy mavzuni tayyorlash ko'p vaqt talab qiladigan ish. Shu sababli, qimmatli qog'ozlarni sotib olishga tayyor bo'lgan va ommaviy taklifni tayyorlash uchun vaqt va xarajatlardan qochmoqchi bo'lgan firma aktsiyalarni xususiy ravishda chiqarishi mumkin.
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26.
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What are the differences between a stop-loss order, a limit sell order, and a market order?
Difference between stop-loss order, limit sell order and market order:
Stop-Loss Order
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Limit sell Order
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Market Order
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1. It specifies a price limit at which only the trade is to be executed.
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1. It specifies a price at which an investor is willing to buy or sell securities.
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1. It specifies the buy- sale of stocks at the current price.
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2. It is used to limit losses while prices are falling.
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2. It is used to generate greater spread.
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2. It is used to guarantee the execut
ion of order but not at a guaranteed price.
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27.
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Why have average trade sizes declined in recent years?
The introduction of electronic trading that permits stocks to be broken into smaller units has been responsible for decline in average trade sizes.
Aktsiyalarni kichikroq birliklarga bo'lish imkonini beruvchi elektron savdoning joriy etilishi o'rtacha savdo hajmining pasayishiga sabab bo'ldi.
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28.
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What is the role of an underwriter? A prospectus?
The role of the underwriter is to purchase securities from the issuing company to resell this. The prospectus, on the other hand contains the description of the firm and the security being issued.
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29.
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How do margin trades magnify both the upside potential and downside risk of an investment portfolio?
The margin is a type of credit that allows the investor to post only a portion of value of security they purchase thereby enhancing their speculative capacity. When the price of the security rises or falls, the gain or loss represents a much higher percentage, relative to the actual money invested.
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30.
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What are the benefits to small investors of investing via mutual funds? What are the costs?
Do'stlaringiz bilan baham: |