Primary Markets and Secondary Markets

___ are exempt from registration requirements and therefore do not require a prospectus.

Treasury securities

A ___ is what the word implies—it introduces its customer's business to a clearing firm. Clearing firms (often called carrying firms or agents) hold funds and securities and settle transactions (clear and process) for their correspondent introducing firms. Essentially, the clearing firm acts as the introducing firm's back office.

fully disclosed introducing broker-dealer

A ___ is exempt from registration. While securities offered in a private placement are generally sold to institutional investors, they can also be sold to small groups of wealthy individuals who meet net worth and income criteria, known as accredited investors.

private placement

How many primary offerings can a corporation issue?

Unlimited