对外经济贸易大学投资学课件2课件.pptVIP

Lecture 2 How Securities are traded How Firms Issue Securities Primary New issue Key factor: issuer receives the proceeds from the sale Secondary Existing owner sells to another party Issuing firm doesn’t receive proceeds and is not directly involved Selling Securities to the public Management must obtain permission from the Board of Directors Firm must file a registration statement with the SEC SEC examines the registration during a 20-day waiting period A preliminary prospectus, called a red herring, is distributed during the waiting period If there are problems, the company is allowed to am