Week 1 individual financial terms and roles / fin 370 / fin/370
Efficient Market: An efficient market is one in which all pertinent information about a given security or asset is fully reflected in its current price. This means that prices are determined by the forces of supply and demand rather than any external factors or manipulation.
Primary Market: The primary market is where new securities are issued to investors for the first time. Investors purchase these securities directly from the issuing company at their initial offering price.
Secondary Market: The secondary market consists of existing securities being traded between investors after they have been issued to the public in an initial offering. The price of a security on this market depends on various factors including supply and demand dynamics as well as news events affecting the underlying assets or companies associated with it.