Buying and Selling Stocks 9.3
secondary market
a market for existing financial securities that are currently traded among investors
portfolio
consists of all the securities held by an investor
odd lot
contains fewer than 100 shares of a stock
commission
is a fee charged by a brokerage firm for buying/selling of a security
primary market
is a market in whicn an investor purchases securities from a corporation through an investment bank or some other representative of the corporation
securities exchange
is a marketplace where brokers who represent investors meet to buy and sell securities
over-the-counter market
is a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange
market order
is a request to buy or sell a stock at the current market value
limit order
is a request to buy or sell stocks at a specified price
stop order
is a type of limit order to sell s particular stock at the next available opportunity after its market price reaches a specified amount
selling short
is selling a stock that has been borrowed from a brokerage firm and that must be replaced at a later date
initial public offering
occurs when a company sells stock to the general public for the first time
account executive
(aka stockbroker), is a licensed individual who buys and sells securities for clients
round lot
100 shares or multiples of 100 shares of a particular stock