| A | B |
|---|
| Treasury Securities | Example is BOND issued by the federal government to raise money |
| Corporate Bonds | Issued by companies to raise money |
| Bond | also a debt (similar to loans) Typically used by city governments to build schools, Fire depts, Roads, etc. |
| 2 Types of Stocks | Common Stock and Preferred Stock |
| Preferred Stock (Hybrid) | has more advantages than common - its paid first during bankruptcy, it also pay dividends in arrears |
| Stock | Shares of a company that are sold to you & I to raise money |
| Primary Stock | 1st Market to raise money for the first time. i.e. Wells Fargo, Bank of America |
| IPO (Initial Public Offering) | The first-time stocks or bonds are sold to raise money in primary market |
| S-1 (Prospectus/Brochure) | Financial overview of a company required for IPO |
| Syndicate | When 2 or more Financial Institutions work together to fund a loan or project |
| Secondary Market | From the word "Second" after the first market (Ex. is NYSE) This is after the IPO |
| Dealer Market | Online, no physical location (NASDAQ) |
| Auction Market | Buy & Sell of stocks and bonds - similar to bidding at an auction (NYSE) |
| Specialist | Middleman, between seller and buyer of financial instruments. He uses his own money to buy - someone people go to buy stocks |
| Risk | The potential loss or gain of a transaction - The unknown factor |
