Financial Markets and Institutions: Stock Market

The most active secondary market, and the most important one to financial managers, is the stock market where the prices of firms' stocks are established. There are a number of different stock markets; however, the two leaders are the New York Stock Exchange, which is a$($ n $)$ exchange, and the NASDAQ, which is a$(n)]$ market. The New York Stock Exchange is a tangible entity that conducts auction markets in listed securities$.$

Stock market transactions can be classified into three distinct categories: $(1)$ outstanding shares of established publicly owned companies that are traded in the $-$Selectmarket, $(2)$ additional shares sold by established publicly owned companies in the $$ market, and $(3)$ initial public offerings made by privately held firms in the $$ market.