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How stocks are traded

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Primary market: sales of new shares.
Object = to raise new capital
Secondary markets: trade of shares
The distinction applies also for bonds
Auction mkts: brokers (generally do not buy & sell) in a physical place. Ex: NYSE in Wall street
Dealers mkts: OTC, dealers that sell & buy, ex: Nasdaq
The auction markets are usually bigger and regroup bigger firms (NYSE: 265 mil. shares traded each day, 2 400 companies). The requirements to be listed in auction markets are harsher (years of existence, minimum capital...). There are more companies in the Nasdaq than in the NYSE, but they are smaller
In every big financial place, many quotations everyday. In practise, when you leave an open order (buy today L'OREAL), you are served at the worse quotation of the day.

How stocks are valued >>


Corporate finance

The subject: corporate finance

PART ONE: CAPITAL EXPENDITURE
The present value
Investment decisions
Practical problems in capital budgeting
Firms evaluation

PART TWO. BASICS OF FINANCE
The financial markets
Options
The market efficiency
Risk
Mergers, Acquisitions, and Corporate Control
International Financial Management

PART THREE FINANCING DECISIONS
Corporate financing
Dividend policy and capital structure

PART FOUR FINANCIAL MANAGEMENT
Financial planning
Short-term financial management


Courses created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.