Copyright 2005 Prentice- Hall, Inc.

Understanding Securities & Investments Chapter 19 Understanding Securities & Investments

Copyright 2005 Prentice- Hall, Inc. Chapter Outline Securities Markets Stocks Bonds Other Investments Buying And Selling Securities Securities Market Regulation The Securities And Exchange Commission Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Securities Markets Securities Are Asset-Based Claims Stocks Bonds Markets Primary- Private Placements & IPOs Secondary Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Investment Banking Securities & Exchange Commission Investment Bank Advise Underwrite Create Distribution Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Common Stock Valuation Par Value Market Value Book Value Investment Traits Blue Chip “Old” Vs. “New” Economy Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Market-Value Growth Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Preferred Stock Stated Par Value Dividends % Of Par Value Cumulative Priority Over Common Callable Call Price Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Major Stock Exchanges Trading Floor NYSE ASE OTC NASDAQ Copyright 2005 Prentice- Hall, Inc.

Regional Stock Exchanges Chicago (Midwest) Pacific Philadelphia Boston Cincinnati Spokane Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Foreign Exchanges London Tokyo Shanghai Warsaw Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. NASDAQ Global Growth Canada Japan Europe Educational Shanghai Bangladore Hong Kong Australia South Korea Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Types Of Brokers Discount Full-Service Online Copyright 2005 Prentice- Hall, Inc.

Growth Of Online Trading Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Bonds U.S. Government Municipal Corporate Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Corporate Bonds Registered Bearer (Coupon) Secured Debentures Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Bond Retirement Callable Bonds Sinking fund Serial Convertible Secondary Markets Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Mutual Funds No-Load Load Reasons For Investing Focused On Financial Objective Conservative Capital Growth Aggressive Growth Diversification Stability & Safety Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Commodities Futures Contracts Commodities Market Margins Copyright 2005 Prentice- Hall, Inc.

Investment Portfolio Considerations Diversification Assets Allocation Risk Tolerance Copyright 2005 Prentice- Hall, Inc.

Buying/Selling Securities Stock Quotations Bond Quotations Mutual Fund Quotations Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Stock Quotations Copyright 2005 Prentice- Hall, Inc.

Mutual Fund Quotations Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Market Indexes Bull vs. Bear Market Dow Jones Industrial Average S & P 500 NASDAQ Composite Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. End Of Year DJIA (1900-2004) Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. End Of Year DJIA (1995-2004) Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Bull Vs. Bear Market Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Stock Market Volumes Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Placing Orders Market Order Limit Order Stop Order Round Vs. Odd Lot Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Financing Purchases Margin Trading Short Sales Copyright 2005 Prentice- Hall, Inc.

Securities Market Regulations Circuit Breakers Program Trading Securities & Exchange Commission Prospectus Insider Trading Blue-Sky Laws Copyright 2005 Prentice- Hall, Inc.