Primary market issues new securities for companies and governments. Secondary market trades existing securities between investors. Secondary market includes organized exchanges and over-the-counter trading
Mark to market measures fair values of fluctuating accounts like assets and liabilities. Provides periodic financial appraisals considering current market conditions. More accurate than historical cost accounting for asset valuation
Stock market enables buying and selling of publicly traded company shares. Major exchanges include NYSE and NASDAQ, but these are just components. Trading occurs primarily through electronic means between remote participants
Settlement date is when buyer pays seller and seller delivers cleared assets. Settlement dates evolved from manual certificate delivery to electronic processing. Settlement time reduced from T+5 to T+1 as of May 28, 2024
Asset class is a grouping of investments with similar characteristics and regulations. Different asset classes often show little or negative correlation. Financial advisors use asset classes for portfolio diversification
Spot rate is the immediate settlement price for an asset. Spot prices reflect market supply and demand at quote moment. Most global spot prices are uniform with exchange rates