7.1. Trading Securities

In order to understand securities trading, you need to know a couple of basic facts.

First, the term “securities trading” refers to buying and selling securities for money, not swapping securities.

Second, before a security can be traded, it must be issued to the public through what is called the primary market. Issuers usually do this with the help of an investment bank, also known as an underwriter. The investment bank purchases securities