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- Hello, you look like you know your stuff, I'm looking to invest into the IPOs, can you help me with that?
- You sure have a good eye sir, I happen to be broker, if you want to know about the IPOs, let's head elsewhere.
- Hey, I know I just said I wanted to invest into the IPOs, but what exactly are they?
- Well to start, IPO stands for Initial Public Offering and it is sold on the primary market.
- This guy doesn't know anything does he?
- Isn't IPO a stock, shouldn't it be sold on the stock market with the rest of the stocks?
- Well, you see, when a company release the stocks for the first time, they are sold on the primary market.
- What you are thinking of is the secondary market where stocks are TRADED.
- Wow, I didn't know there was so many markets, are there any other marketplaces?
- What's sold there sir?
- The commodity market is where raw materials and natural goods like meat or gold are sold
- When did I turn into a teacher...
- Yes, there is also the commodity and future markets.
- Can't I buy meat at walmart?
- Okay
- And as for the future market, it is where people buy and sell commodities, like a secondary market
- Yes, but it's different
- Who buys meat at walmart?
- Wow, thanks for all the help sir
- What is it sir?
- Okay?
- No problem kid, just promise me one thing.
- Don't buy meat at walmart
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