Novice
Markets and issuers
Who sells securities, who buys them, and what a market actually does — literacy only. Education only — not a recommendation to buy, sell, or hold anything.
What a market does
A market is a place (physical or electronic) where buyers and sellers agree on a price for something transferable.
- Primary market — issuer raises money by selling new securities.
- Secondary market — investors trade existing securities with each other.
- Price discovery is noisy; a quote is not a promise of future value.
Issuers in plain words
- Corporations issue equity (ownership) and debt (IOUs).
- Governments issue Treasuries and other public debt.
- Municipalities issue local/public project debt (more later in the track).
- An issuer’s story and balance sheet matter more than a ticker’s vibe.
Exchanges vs over-the-counter
- Exchange-listed — standardized listing rules, visible order books (often).
- OTC — dealer networks; can be less transparent or less liquid.
- Liquidity and transparency are features you name before you romanticize a price.
Literacy takeaway
Separate three roles: issuer (needs capital), investor (takes risk for possible return), intermediary (broker, exchange, custodian). Confusing them is how marketing slips past skepticism.