Financial Investment Analysis
for lecture @BI Oslo
for lecture @BI Oslo
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Lernkarten
put option
The right to sell an asset at a specified exercise price on or before a specified expiration date.
futures contract
obliges traders to purchase or sell an asset at an agreed - upon price at a specified future date.
Private Placement
primary offerings in which shares are sold directly to a small group of institutional or wealthy investors.
Initial Public Offering (IPO)
First sale of a stock by a formerly private company
Underwriters
Underwriters purchase securities from the issuing company and resell them to the public
Prospectus
A description of the firm and the security is issuing
Dealer Markets
markets in which traders specialzing in particular assets buy and sell for their own accounts
auction market
a market where all traders meet at one place to buy or sell an asset
bid market
The price at which a dealer it other trader is willing to purchase a security
ask price
The price at which a dealer or other trader will sell a security
bid-ask spread
The difference between the bid and asked prices
limit buy (sell) order
an order specifying a price at which an investor is willing to buy or sell a security
stop order
trade is not to be executed unless stock hits a price imit
over the counter (OTC) market
an informal network of brokers and dealers who negotiate sales of securities
