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? Exchange. A place where
stocks are traded, such as the New York Stock Exchange, the American Stock
Exchange, and many other regional and specialty exchanges. Each is regulated by
a board of directors, and only members may trade there.
? NASDAQ. An abbreviation for
National Association of Securities Dealers Automated Quotations. The NASDAQ is a
computer network that reports transactions of over-the-counter (OTC) stocks. It
provides OTC buyers and sellers with information similar to what brokers get
from auctions on an exchange floor.
? Over-the-counter (OTC) market.
Unlike stocks sold by public auction at exchanges, this is the market for trades
negotiated directly between buyers and sellers.
? Options. Rights to buy or sell
shares of a stock if it reaches a certain price per share.
? Primary market. The initial
offer of a company's shares to the public. Generally, the company sells its
shares to an investment bank, which puts them on the secondary market.
? Secondary market. The trading of
shares between buyers and sellers, either at an exchange or over the counter.
Last, but by no means least, come some terms that refer to
the values of stocks.