Regulations and Provisions in Securities Markets Quiz

Regulates and enforces securities laws to protect investors and maintain fair, orderly, and efficient markets.

The first sale of stock by a private company to the public.

Shares of large, well-established and financially sound companies with a history of consistent performance.

Shows how much a company pays out in dividends each year relative to its stock price.

Responsible for holding and safeguarding financial assets on behalf of institutional investors or individuals.

Illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Real estate market is not considered a securities market; it involves the buying, selling, and renting of property.

Smallest possible change in the price of a security traded on an exchange.

Requires companies to provide full and fair disclosure of all material information related to the offering of securities.

Legal document that provides details about an investment offering for sale to the public.

Ensures there is always a market for securities by being ready to buy or sell at publicly quoted prices.

Limit order sets a maximum or minimum at which you are willing to buy or sell, while market order executes immediately at the current market price.

Process whereby a company reduces the number of its outstanding shares to increase the share price.

Strategy used by companies to discourage hostile takeovers by making the target company less attractive to potential acquirers.

Difference between the highest price a buyer is willing to pay for a security (bid) and the lowest price a seller is willing to accept (ask).