What Is Market Capitalization? Market capitalization, or “market cap,” represents the total dollar market value of a company’s outstanding shares of stock. Investors use this figure to determine a company’s size instead of sales or total asset value. In an acquisition, the market cap helps determine whether a takeover candidate represents a good value for the acquirer. KEY TAKEAWAYS
What Is the New York Stock Exchange (NYSE)? The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity on March 8, 2006, following the
What Is the Secondary Market? The secondary market is where investors buy and sell securities. Trades take place on the secondary market between other investors and traders rather than from the companies that issue the securities. People typically associate the secondary market with the stock market. National exchanges, such as the New York Stock Exchange (NYSE) and
What Is a Primary Market? A primary market is a source of new securities. Often on an exchange, it’s where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities. Primary markets are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee
What Is an IPO? An IPO is an initial public offering, in which shares of a private company are made available to the public for the first time. An IPO allows a company to raise equity capital from public investors. The transition from a private to a public company can be an important time for private investors
What Is Ethena? Ethena is the project behind USDe, a synthetic dollar backed by assets including ETH, stETH, BTC, and USDT. USDe does not rely on traditional financial infrastructure, nor does it require overcollateralization. Key Takeaways One of the biggest challenges facing the crypto space is the lack of a crypto-native solution for a globally
What Is the Securities and Exchange Commission? The U.S. Securities and Exchange Commission is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public
What Is Bull Market? “Bull market” is the term used to describe a financial market in which prices are rising or are expected to rise. It is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities. Prices of
The stock market is not a place you can visit but refers to the trading (some physical, most online) of shares representing the partial owning of companies. It’s not only where businesses raise capital but is used as a sign of the economy’s health. KEY TAKEAWAYS The price of stocks changes based on supply and
A bull market is when the overall rise of stocks rise around 20% for an extended period of time. If you’re interested in investing, you’ll notice the phrase “bull market” often comes up in common parlance. “The bulls were out today,” says some strategist on TV or X (formerly known as Twitter). But what is