Types of

Securities Markets
Presented by:
Jenny Ross Revilla
Markgil Opao
Kathlyn Jmablos
Fritz Medallon
 The Primary Markets
Primary market is a source of new securities. Often on an
exchange, it's where companies, governments, and other
groups go to obtain financing through debt-based or
equity-based securities.

Primary markets are facilitated by underwriting groups

consisting of investment banks that set a beginning price
range for a given security and oversee its sale to
investors.
 Types of Primary Markets
Initial Public Offering (IPO)
The first time a company offers its shares to the public,
raising capital by selling ownership stakes.
Rights Offering
Existing shareholders are given the right to buy additional
shares at a discounted price before the general public.
Private Placement
The sale of securities directly to a small number of
investors, often institutions, without a public offering.
 Types of Primary Markets
The IPO Process
Involves a company's transition from private to public
ownership.
Includes preparation, due diligence, filing with regulatory
bodies, and underwriting by investment banks.

The Role of an Investment Banker

Facilitates IPOs by underwriting, pricing, and distributing
shares to investors.
Provides advisory services for mergers, acquisitions, and
other financial transactions.
 The Secondary Markets
The secondary market is where investors buy
and sell securities. Trades take place on the
secondary market between other investors and
traders rather than from the companies that
issue the securities.
 Types of Secondary Markets
Broker Markets - buyers and sellers transact through intermediaries (brokers)
who match orders.
National Exchanges - organized and regulated markets with centralized
trading, such as the New York Stock Exchange (NYSE).
Regional Exchanges - smaller exchanges that operate within specific
geographic regions.

Dealer Markets - trading occurs directly between buyers and sellers through
market makers (dealers).
Nasdaq - a major electronic exchange, known for technology and internet-
based securities.
OTC (Over-the-Counter) - trading of securities that are not listed on
exchanges, facilitated directly between buyers and sellers.
 Types of Secondary Markets

ECNs (Electronic Communication Networks)

Automated systems that match buy and sell
orders electronically, enhancing trading
efficiency.
Thank you
very much!