In the investment community, the primary market refers to the market where securities are created, while the secondary market is the stock market where investors trade securities that they already own. While these terms sound similar, they refer to two very different things.Know More
When investors refer to primary markets, they are referring to what often is called an initial public offering, or IPO. When a private company decides to sell shares of stock on the open market, it prepares a preliminary list of the company's assets and the expected value of the issue, which is reviewed by an underwriting firm. Called a preliminary prospectus, or "red herring," this document is not official until it is approved by all of the appropriate government regulatory agencies. Once that occurs, it becomes an official prospectus, which is the document that investors review when they determine whether or not to buy the stock.
Once investors purchase a stock, it is no longer traded on the primary market as an IPO. Investors now deal directly with each other without the involvement of the issuing corporation. This occurs in the secondary market, which includes the New York Stock Exchange, Nasdaq and other stock markets around the world.Learn more about Economics
Debatably, there are many different pros and cons to operating business under a mixed economic model, such as balance in markets and government interference. These pros and cons are the result of having an economy comprised of privately owned and publicly owned establishments. As the name implies, a mixed economy has its appeal as a blend of capitalism and socialism.Full Answer >
Heating oil prices are affected by seasonal demands, changes in the cost of crude oil, competition in markets and operating costs. The price consumers pay differs over time and depends on where they live.Full Answer >
Among the many effects of an economy in recession are interest rates falling, profits plunging, unemployment rates rising, and the stock market becoming unstable. People tend to hold onto their money rather than spend it, and financial fears are prevalent.Full Answer >
A secondary ecological succession will follow the destruction of the vegetation in an ecosystem, even if it has been completely destroyed in a major forest fire, provided that the soil has been left intact. Seeds brought into the area by wind or by animals, or seeds that were left below the soil before the disturbance, will take root and become the pioneer plants of the secondary succession. Herbaceous plant growth, such as grass, will begin to grow first, followed by bushes and the first-emerging trees, and lead ultimately to a restoration of the original ecosystem.Full Answer >