New securities are usually sold in the primary market to these firms. The investment bank will then offer its part of the issue to the general investor. Organized Exchanges are centralized auction-like markets. Futures contracts trade on the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Futures Exchange. I.7 Information Information is critical to the operation of capital markets.
Prices respond to the arrival of new information.
Examples of public information are regularly scheduled macro economic news announcements. A summary of the scheduled announcements for the week and the market forecasts appears on page 2 of the Wall Street Journal. Most in finance track these important macroeconomic announcements. Private information is more difficult to pin down. It is usually revealed by trading activity.