ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


IPO Videos 120 videos

Finance: What is a Lock Up Agreement?
3 Views

What's a lock-up agreement? We think it has something to do with a shiv, but let's watch this video, just in case.

Finance: What are Capital Markets?
7 Views

What are Capital Markets? The most often context used for “Capital Markets” is in corporate finance and investment banking, and it refers prima...

Finance: What are Overbought and oversold?
1 Views

What are overbought and oversold? Hit play to find out.

See All

Finance: What is Primary Market? 3 Views


Share It!


Description:

What is the primary market? Hit play to find out.

Language:
English Language

Transcript

00:00

finance a la shmoop what is the primary market all right well a primary market

00:08

is a market where baby stock issues go to be bought for the first time debt [Baby with stocks for heads on conveyor belt]

00:14

equity and other securities start trading on the primary market usually

00:19

courtesy of your kindly loving IPO like primary it's the first time they're

00:24

offered in that process for a brief moment in time the underwriter [Case of cash appears]

00:27

sponsoring the primary market offering of those securities actually owns them

00:33

they then mark them up a few percent and turn around and sell them to the public

00:36

much like that storks brief light from the fluffy clouds in the sky to that you [Stork flying with stock]

00:42

know front doorstep the magic act that created a legal and Farish primary

00:47

market was the 1933 Securities Act which essentially regulated the process for [Securities Act appears on table]

00:52

how companies and banks offer new shares to an unwitting baby innocent public

00:57

after that offering those securities then trade on what is called the

01:01

secondary market clever naming their regulated by the also cleverly named

01:06

Securities Act of 1934 all of this was done to protect investors who were [Men wrestling]

01:11

wrestling greed and fear and ignorance and yes this IPO essence really crapped

01:17

out

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...