Securities markets are the markets in which securities, or financial assets, are traded.
The two types of securities markets are the primary market and the secondary market. The primary market is used for trading newly issued securities, whereas the secondary market is used for trading securities that have already been issued.
Organized stock exchanges are markets that are used to facilitate the trading of financial instruments. The main organized stock exchanges are the New York Stock Exchange and the American Stock Exchange.
A stockbroker is a person who is employed by a commission house or merchant and who solicits business for these institutions. An investment advisor is a person or organization that makes the necessary daily decisions regarding an investor’s portfolio. Both stockbrokers and investment advisors are paid in one of the following ways: (1) commission, (2) assets under management, or (3) combination pay.
The five questions you should ask before hiring a financial advisor are the following: (1) how are they compensated, (2) what is their education, (3) are they working as a fiduciary or an advisor, (4) do they only offer investment advice, or full financial planning services, and (5) how much are their fees.
