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Classifications of the Financial Markets (Organization of financial…
Classifications of the Financial Markets
Ways of obtaining funds
by issuing equities, such as common stock
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The main disadvantage of owning a corporation’s equities rather than its debt is that an equity holder is a residual claimant
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where buyers and sellers of securities (or their agents or brokers) meet in one central location to conduct trades
dealers at different locations have an inventory of securities and stand ready to buy and sell securities “over the counter” to anyone who comes to them and is willing to accept their prices.
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