Secondary market organise exchanges-over the counter markets, Financial Management

Assignment Help:

How can secondary market organised the exchanges and over the counter markets?

Exchanges and over-the-counter (OTC) markets:

Secondary markets can be organised by exchanges or over the counter (OTC) markets.

• In exchanges, buyers and sellers (by their brokers) transact into one central location to conduct trades. Illustrations are the New York Stock Exchange (NYSE) that recently obtained the American Stock Exchange (AMEX) and the London Stock Exchange (LSE).

• In over-the-counter markets, dealers at various locations have an inventory of securities, and they are ready to buy and sell such securities ‘over-the-counter’ to anyone willing to admit their price. Due to the technological links among dealers regarding prices, over the counter markets are competitive and not extremely diverse from organised exchanges. Over the counter trading is most important into the USA, where needs for listing stocks onto the exchanges are rather strict. Illustrations of over the counter markets are: the US government bond market and NASDAQ stands for National Association of Securities Dealers Automated Quotation System stock exchange. The national association of securities dealers automated quotation system is the second largest US market. Usually, this used to be a pure dealer market.


Related Discussions:- Secondary market organise exchanges-over the counter markets

Discount rate determinants, Discount Rate Determinants The discount rat...

Discount Rate Determinants The discount rate is the firm weighted average cost of capital. It represents the opportunity cost of investing creditors and shareholders funds in o

Sinking fund provisions, Sinking fund provisions is a pool of funds s...

Sinking fund provisions is a pool of funds set aside to repay the debt. Under this, certain amount of money is kept aside every year form profit. It is then used

Define accounts receivable are sometimes not collected, Accounts receivable...

Accounts receivable are sometimes not collected.  Why do companies extend trade credit when they could insist on cash for all sales? Extending trade credit almost all the time le

Explain the bird in the hand theory of cash dividends, Explain the bird in ...

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory state that dividends received now are better than a promise of future dividends.  U

Name two patterns of cash flows for a share of common stock, Name two patte...

Name two patterns of cash flows for a share of common stock. How does the market define the value of the most common cash flow pattern for common stock? Cash flows for a share

Define compensating balances, What are compensating balances and why do ban...

What are compensating balances and why do banks require them from some customers?  Under what circumstances would banks be most likely to impose compensating balances? Compensati

Personal budget project, 15 points) You need to develop a personal budget. ...

15 points) You need to develop a personal budget. Try to be as realistic as possible. If you are going to school and not working then do some research to find out what salary you w

Weighted average cost of capital or composite, Q. What is denoted by weight...

Q. What is denoted by weighted average cost of capital OR Composite? How is it calculated? Exemplify with an example. Ans. Weighted Average Cost of Capital: - Capital formation

Explain the procedure for cost benefit analysis, Question 1: i) Pe...

Question 1: i) Performance budgeting is the best budgeting system. Discuss. ii) Why there is a need for implementing MTEF in the Mauritian Public Sector? Questi

Bureaucratic management, nestle is an orgnization wether bureacratic approa...

nestle is an orgnization wether bureacratic approach approperiate for the organizational performance or not?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd