Over-the-Counter Market
Trading operations conducted outside the stock exchange through multiple communication networks that connect brokers and dealers on one hand and investors on the other. The over-the-counter market does not have a mechanism to halt sharp rises or falls in securities prices or restore market balance. The most famous over-the-counter market in the world is NASDAQ.
Parallel Market
The market where shares registered and offered under Chapter Eight of the Offering of Securities Regulations and Continuing Obligations are traded.
Organized Market (Stock Exchange)
An organized market for trading securities, overseen by an authority responsible for ensuring compliance with the exchange’s regulations. The New York Stock Exchange is a prime example of an organized market, where all traders gather in one place to buy and sell securities. Trades are typically executed by an exchange member on behalf of investors, […]
Order-Driven Market
A market where buyers and sellers are matched according to a strict time priority based on price and the quantity of shares being traded, and does not require market makers.
Quoted Market
A trading system utilized by securities firms that set and quote bid and ask prices.
Spot market (cash)
The spot market refers to the market in which the securities traded are delivered and received, or the transaction is settled, on the same day or within a short period (business days) determined by the authority supervising securities trading.
Secondary market
The market where previously issued securities are traded.
Primary Market
The market in which newly issued securities are sold for the first time to investors, with proceeds going directly to the issuing entity. IPOs and new bond issuances take place in the primary market.
Ex-Dividend Stock
The period during which an investor entering into a purchase of stocks or bonds (for which dividends or interest (coupons) have been previously announced) is not entitled to receive those dividends or interest to be distributed.
Preferred Stock
A class of shares that grants its holder a set of rights not enjoyed by common stockholders, including priority for preferred stockholders to receive a predetermined percentage of company profits and priority over common stock in receiving their rights upon company liquidation.