The primary issue of securities of a type already trading in the secondary market

Brokers that offer fewer brokerage services and pass the savings on to the investors

Individuals who act as informal venture capitalists

An issuer of securities publicly announces a desire to sell securities and solicits offers from several investment banking firms

A trader who makes a profit based on the difference between the bid and the ask prices of securities

An issuer of securities directly negotiates with a single investment banker

Groups of investment banking firms that take pro rata shares in primary issues with the aim of reducing price risk

The situation in which the managers of a business purchase a business from the owners or shareholders using resources provided by a third-party financier — often a venture capital firm

Capital provided to initiate manufacturing and sales

Capital provided to fund major expansion such as plant expansion, product improvement or marketing

An acquisition strategy that involves buying a company using a large amount of debt to fund the purchase cost of the target company

Capital used in product development and initial marketing

Capital provided to a company at the idea stage

The initial sale of securities at less than their true market value

Capital used for initial expansion of a company that has already been producing and selling a product

Funds provided to rescue a company from financial distress

A bank that specialises in helping businesses and governments sell their new security issues in the primary markets to finance capital expenditures, and makes secondary markets for the securities as brokers and dealers

An initial public offering

Equity financing provided to young businesses by investors who then play an active role in advising the management of the business

An institution that can accept deposits, make loans, underwrite securities, engage in brokerage activities, and sell and manufacture other financial services such as insurance

The distribution of securities in a process in which the investment banker promises only to make its best sales effort

The distribution of securities in a process in which the investment banker guarantees (underwrites) that the issuer will receive a fixed amount of money whether the securities are all sold to investors or not

The legal requirement that investment bankers diligently seek out and disclose all relevant information about an issuer before securities are sold to the public

Capital provided for a company that expects to go public within a year or so