Equity Issuance and Trading
Free CFA Level I lesson in Equity Investments. 14 min read, ~2,088 words.
Primary market = issuer receives cash (IPO, FPO, rights). Secondary market = investors trade existing shares; issuer gets nothing. Firm commitment underwriting puts price/underpricing risk on the bank; best efforts leaves that risk with the issuer. Exchanges have central public order books and listing rules. OTC uses bilateral dealer networks...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- equity issuance and trading
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