| Flap 1 | Flap 2 |
| Best efforts arrangement | Agreement for the sale of securities in which the investment bank handling the transaction gives no guarantee that the securities will be sold. |
| Capital markets | The segments of the financial markets where the insttruments that are traded have maturities greater than one year. |
| Debt markets | Financail markets where loans are traded. |
| Equity markets | Financial markets where corporate stocks are traded. |
| Financial markets | A system consisting of individuals and institutions, instruments and procedures that bring together borrowers and savers. |
| Informational efficiency | The prices of investments reflecting existing information and adjusts quickly when new information enters the market. |
| Initial public offering(IPO) market | The market consisting of stocks of companies that have just gone public. |
| Insiders | Officers, directors, major stockholder, or others who might have inside information on a company's operations. |
| Investment Banker | An organization that underwrites and distributes new issues of securities; it helps businesses and othe entities obtain needed finances. |
| Money markets | The segment of the financial markets where the instruments thaat are traded have maturities equal to one year or less. |
| Over the counter markets | A collection of brokers and dealers, connected electronically by telephones and computers, that provides for trading in securities not listed on the organized exchange. |
| Primary markets | markets in ehich various organizations raise funds by issuing new securities. |
| Prospectus | A document describing a new security issue and the issuing company. |
| Registration statement | A statement of facts filed with the SEC about a company that plans to issue secutities. |
| Secondary markets | Markets where financial assets that have been previously issued by various organization are traded amoung investors. |
| Undrwriters spread | The difference between the price at which the investment banking firm buys an issue from a company and the price at which the securities are sold in the primary market; it represents the in vestment banker's gross profit on the issue. |
| Underwritten agreement | Agreement for the sale of securities from the issuer, thus agreeing to bear any risk involved in the transaction.t |
