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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Stock exchanges
|
Facilities that
allow investors to purchase or sell existing stocks |
|
•New
York Stock Exchange
|
§Most
popular organized exchange in U.S.
|
|
Floor traders
|
Traders at a stock exchange who
execute trades to fulfill orders placed by other investors
|
|
Specialists
|
Traders who help to make
a market in one or more stocks by taking the position opposite of orders placed by clients |
|
§American
Stock Exchange
|
Lists
about 800 stocks that are generally smaller and less actively traded
|
|
Over-the-counter (OTC) market
|
An electronic communications
network that allows investors to buy or sell securities
|
|
Market-makers
|
Traders who execute trades on the
OTC market and
earn commissions in the form of a bid-ask spread |
|
Electronic Communication Networks (ECN)
|
§computer
systems that match up desired purchases and sales of stocksAllow
for after-hours trading
|
|
Stock Quotations
|
•Provide
information about the price of each stock over the previous day or a recent
period
|
|
•Selecting
a broker
|
§Brokers
and analysts tend to be
overly optimistic §May encourage frequent trading to increase their commissions §Should remind you of tax effects of selling |
|
Bias in Analyst Recommendations
|
§Tend
to be overly optimistic
§May
be reluctant to make sell recommendations
§Analysts
must disclose ownership of stocks they recommend
|
|
Discount brokerage firm
|
A brokerage firm that executes
your desired transactions but does not offer investment advice
|
|
Full-service brokerage firm
|
A brokerage
firm that offers investment advice and executes transactions |
|
Ticker symbol
|
The abbreviated term that is used
to identify a stock for trading purposes
|
|
Round lot
|
Shares bought or sold in
multiples of 100 |
