Question

WH2 : differ between Initial public offerings and Public offerings WH3 : differ between Primary market and secondary market WH4: What are the market orders and give examples

Answer 1

Answer

Initial Public Offerings ( IPOs)

IPOs is the process of offering shares of an private organization to the public though issuance of shares or stocks.
By offering IPO the company can raise capital which can be utilized for reasons like expansion or other uses like strategic investments.

When IPOs are issued the shares or stocks of the company starts trading on listed stock exchanges and investors can buy or sell these shares.

Public offerings

The Public Offerings are sale of securities to more than 35 people, and it requires the filing of registration statements with the appropriate regulatory authorities. This offering is made by hiring an investment banker to arrive at an offering price.

Answer

Primary market

Primary market is the market when the shares are offered initially in the market like Iniitial Public offerings (IPOs). The primary market is the market where firm can sell new stocks and bonds to the public for the first time.

Seondary market

Secondary market is the market in which the shares or stocks and bonds are already traded ( ie bought or sold ) by the investors. These stocks and bonds are already listed in the exchanges and traded.

Answer

Market Orders

Market orders are orders to buy/sell a stock at the best available price.The order is executed at the market price and submitted and executed on an instant basis. It will execute at or near the current bid (for a sell order) or ask (for a buy order) price. The market orders cannot be used to set stop loss.

Example - If a company's stock market price is $ 100, and by the time we place a market order it goes up to $ 102, then the market order is executed at $ 102 only.