The Business of Trading Securities
Objective 17-3 Describe the role of securities markets and identify the major stock exchanges and stock markets.
Stocks, bonds, and mutual funds are known as securities because they represent secured, or financially valuable, claims on the part of investors. The markets in which stocks and bonds are sold are called securities markets. By facilitating the buying and selling of securities, the securities markets provide the capital that companies rely on for survival. Mutual funds, on the other hand, are not bought and sold on securities markets but are managed by financial professionals in the investment companies that create, buy, and sell the funds.
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