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