Page 72 - Microsoft Word - 00 P1 IW Prelims.docx
P. 72
Chapter 4
6.2 Capital markets
Stock market
A place where LARGE companies can become ‘listed’ or ‘quoted’.
New shares can be issued into the market, and existing shares can be traded.
Stringent criteria are applied to quoted companies, but the company’s profile is
raised by being quoted.
Dark pool trading
Dark pool trading relates to the trading of listed stocks away from the central
exchanges.
Details of the trades are concealed from the public
Information asymmetry becomes an issue of greater importance, so some stock
exchanges have prohibited dark pool trading.
60
