Chapter 2

Market for new securities sold to investors for the first time to raise capital for the issuer.

Stock exchange where investors trade stocks with each other.

Largest stock market in terms of market capitalization.

Market in which brokers represent buyers and sellers and prices are determined by supply and demand.

Employee of a NYSE firm who manages the market for an individual stock.

100 shares.

Nation's second largest stock exchange.

Common stock held by unaffiliated institutional and individual investors.

Largest organized equities market by trading volume and number of listed companies.

Price determination through bargaining.

Member firm that uses its own capital to trade and hold an inventory of NASD stock.

Customer buy and sell activity.

Difference between bid and ask prices.

Highest bid and lowest offer prices.

Market for smaller companies that trade prior to full listing on the Nasdaq national market.

Equity priced below $1.

Regulated quotation service for very small Over-The-Counter equity securities.

Coupons that signify ownership of foreign stocks.

Price-weighted index of 30 large, industrial leading stocks.

Adjustment factor used to account for stock splits.

Popular value-weighted market index.

Performance standard to be evaluated against.

Market capitalization index for the 3,000 largest U.S. companies (98 percent of U.S. market cap).

Total dollar value of the U.S. equity market (in billions of dollars).

Market capitalization index for the 1,000 largest U.S. companies (90 percent of U.S. market cap).

Market value weighted index of all 5,000+ stocks listed on the Nasdaq Stock Market.

Market capitalization weighted index of Nasdaq's largest companies.

Market cap index of Dow Jones Wilshire (5000) index companies minus the S&P 500.

Market cap index for 400 medium sized domestic stocks.

Small company stock price index for the 2,000 smallest companies in the Russell 3000 index.

Market cap weighted index of 600 small domestic stocks.

Leading measure of the Japanese stock market.

Capitalization weighted index of the 100 top companies on the London Stock Exchange.

Market basket of 35 blue-chip Canadian companies.

Market cap weighted measure of Hong Kong stocks.

Leading global stock index stocks from 21 countries.

Stock market in a developing nation.

Stock market in mature countries.

Law instituting public accounting reforms and investor protections.

Industry group with oversight authority granted by the SEC.

A self-regulatory organization of the securities industry.

Computerized system that flags unusual volume or price changes.

Coordinated effort to detect cross-market manipulative trading.

Private form of dispute resolution with binding outcomes.

Rules for halting securities trading in volatile markets.