Management and Organizational Studies 2277A/B Study Guide - Final Guide: Initial Public Offering, Risk-Free Interest Rate, Gross Domestic Product

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Primary market a market in which newly issued securities are traded. Secondary market a market in which existing securities such as debt securities are traded. More than 1 million shares of any large firm are traded. The price fluctuates due to supply and demand. Initial public offering (ipo) the first offering of a firm(cid:1685)s shares to the public. Institutional investors professionals responsible for managing large pools of money, such as pension funds on behalf of their clients. They do more than half of all trading in financial markets. Individual investors individuals who invest funds in securities. Hold their stocks for periods longer than 1 year. Day traders investors who buy stocks and then sell them on the same day. Hope to capitalize on short term movements in security prices. The amount of dividends paid out per year is usually between 1-3% of the stock(cid:1685)s price. Growth stocks shares of firms with substantial growth opportunities.