Securities markets, offerings, product types and risks tested on the SIE exam.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the primary market?
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Market where new securities are issued directly by the issuer to investors for the first time- What is the secondary market?
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Market where existing securities are traded among investors after their initial issuance- What does IPO stand for?
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Initial Public Offering, the first sale of stock by a company to the public- What is a shelf registration?
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SEC filing allowing an issuer to offer securities over a specified period without filing a new prospectus each time- What is an underwriter's primary role?
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To purchase securities from the issuer and resell them to investors- What is a red herring prospectus?
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A preliminary prospectus with a red warning text indicating the securities are not yet offered for sale- What is overallotment in an offering?
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Option allowing underwriters to purchase additional shares beyond the stated amount to meet excess demand- What is a rights offering?
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Secondary offering allowing existing shareholders to purchase new shares before they are offered to the general public- What is a warrant?
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Security granting the holder the right to purchase an underlying stock at a fixed price within a specified time period- What does OTC stand for?
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Over-the-Counter, dealer trading done directly between parties without a centralized exchange- What is a market maker?
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A dealer who buys and sells securities to provide liquidity and narrow the bid-ask spread- What is the bid-ask spread?
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The difference between the highest price a buyer will pay and the lowest price a seller will accept- What is the National Market System?
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Regulatory system linking major stock exchanges to ensure fair and transparent pricing and execution- What are corporate bonds?
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Debt securities issued by corporations to raise capital, obligating the issuer to pay periodic interest and repay principal- What is duration?
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A measure of a bond's sensitivity to interest rate changes, expressed in years
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