BUS 325 | Chapter 3: Securities Markets
This chapter explores the structure and functioning of securities markets, explaining how financial assets are issued, traded, and priced. It provides students with a clear understanding of how capital flows from investors to issuers and how markets facilitate liquidity, price discovery, and risk sharing.
Chapter 3 covers the different types of securities markets, their participants, and the mechanisms that ensure market efficiency and transparency. Understanding these markets is essential for analyzing investment behavior and making informed investment decisions.
By the end of this chapter, you will understand:
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The role and importance of securities markets in the financial system
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Primary and secondary markets and how they operate
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Organized exchanges versus over-the-counter (OTC) markets
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Market participants, including investors, brokers, and dealers
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Market efficiency, regulation, and trading mechanisms
This chapter provides a strong foundation for understanding how securities are traded and how market structure affects investment decisions in the BUS 325 Investment course.