The most active secondary market, and the most important one to financial managers, is the stock market where the prices of firms' stocks are established. There are a number of different stock markets; however, the two leaders are the New York Stock Exchange, which is a(n) exchange, and the NASDAQ, which is a(n) market. The New York Stock Exchange is a tangible entity that conducts auction markets in listed securities. Stock market transactions can be classified into three distinct categories: (1) outstanding shares of established publicly owned companies that are traded in the market, (2) additional shares sold by established publicly owned companies in the market, and (3) initial public offerings made by privately held firms in the market.