stock market

[gloria]

who can tell me the difference blw open market and secondary market, and the meaning IPO, PLS GUYS I NEED AN URGENT ANSWER

[sholzywolzy]

Gloria,

Regarding your question, did you mean open market or primary market?

An open market is a market that is widely accessible to all investors.

Open Market Operations is the buying or selling of government securities by e.g. CBN in order to control the money supply. This happens when CBN issues treasury bills and or when CBN offers govt bonds for sale.

The PRIMARY market is the market for new share issues. Basically, in the primary market, the shares are purchased directly form the issuer (the Company e.g. First Bank).

The SECONDARY market is a market in which an investor (e.g. Gloria) would buy shares from another investor (e.g. sholzywolzy).

For example, if today you were able to successfully buy First Bank shares in the current offer @ NGN33, you would have bought the shares in the Primary Market. If on the other hand, you were not successful due to the offer being oversubscribed, or maybe you just want to increase your holding, after the offer closes, you would only be able to buy from another investor in the secondary market (and because FBN is quoted, you would only be able to buy thru the stock exchange).

An IPO – Initial Public Offering, is the first sale of shares by a company to the public. An example would be Transcorp.

On the other hand, a PO – Public Offer is what First Bank is doing now because, this is not the first time First Bank is offering its shares to the public. Note though, that this current offer has some shares earmarked for the general public (a PO) and some for existing shareholders (rights).

Hope that helps.


Sholzywolzy

[larrymania]

With The Reference To Your Question,
Open Market Is The Primary Market That Individual Can Buy During The Public Offer Why Secondary Market Is The Market That You Buy Through A Stock Broker,a Broker Can Buy Before The Public Offer Or After The Public Offer. And Moreso, To Open Secondary Market U'll Need To Open Cscs Account With A Broker.

[Captain Ugo]

Open market includes any market that is open to all investors and consumers (the public), however in economics it most generaly refers to a market by which CBN controls inflation thru the sell of govt bonds etc. Sought of mopping up excess liquidity (money in supply) or otherwise. IPO is innitial public offer, clasified under the 'primary market'. as above while, secondary markt is as explained, example the 'nigerian stock exchange' trading floor where u operate thru stock brokers. hope u are ok.
NB: appologies,pls ignore my earlier critism on Larrymania's open market definition as am not very sure if an IPO is an open market too, since on the sellers side (issuer of security), only the public liability companies (PLCs) can issue an IPO, excluding the private limited liability coys (LTDs), Tonidol take note. tanx

[tonidol]

Originally Posted by Captain Ugo

Larrymania is not very correct on "open Market'. Open market is a means by which CBN controls inflation thru the sell of govt bonds etc. Sout of mopping up excess liquidity (money in supply) or otherwise. IPO is innitial public offer as above while, secondary markt is as explained, example the 'nigerian stock exchange' trading floor where u operate thru stock brokers. hope u are ok.

Can Moderators please move this discussion to the right sector?