Rowan student investment group Security Trading October 17th, 2017

RSIG 2017 yogo fundraiser! Thanks to all who attended! Over 25 members attended 20% of the profits will benefit RSIG

Market Analyst committee elections next meeting Become involved with the E-board Learn about markets Work on crafting brief reports to be presented to the club Looking for hardworking, motivated members

What is securities trading? Securities Trading is a broad term that defines the Industry surrounding Investing Many types of companies make up the world of securities trading including Investment Banks Stock brokerages Broker-Dealers

The financial work flow Fund manager Buy Side Trader Buy side trader Buy Side Sell Side Exchange Sell Side Trader Sell side trader Being able to trade on An exchange is known as “Access to the Street” The financial work flow

Example of the financial workflow “buy side” John, a buy side trader for Chase bank gets word from the Fund manager to buy 100,000 shares of Microsoft John, checks his Bloomberg terminal to do some research on Microsoft. He checks trade advertisements to see who has been actively trading the stock, and then he checks IOIs (indications of interest)using that information, he finds that two “Sell Side” brokers are actively trading the stock. Having done his research, John feels comfortable paying anywhere between $77.50 and $77.90 for each security He logs onto an OMS (order management system) and he routes the order to a Sell side firm

Example of the financial workflow “sell side” Mary, a sell side trader at Alliance Bernstein see’s johns order pop up on the main blotter of her OMS (order management system) John has an account opened up with Mary’s firm. John and Mary have done business together in the past, and Mary has been most active in the stock. Mary receives the order, she knows where the liquidity is being traded. Mary has two options at this point, she can either route the order out to the street with the restrictions of not selling below $77.50; or she can call another firm she know is in the market with a sell position on Microsoft and make a deal over the phone. Once the order gets a hit, it becomes filled and the parties have conducted a successful trade.

What is “Sell Side Trading?” Sell side refers to the part of the financial industry that is involved in the creation, promotion and sale of stocks, bonds, and other securities. Sell-side firms work to create and service products that are made available to the buy side of the financial industry. Sell Side Traders will almost always have “access to the street” Many Sell side Brokers will specialize in a particular market, being able to provide better service to their clients

What is the goal of a sell side trader? The sell side tries to get the highest price possible for each financial instrument while providing insight and analysis. Sell side traders attempt to make a spread by selling a security for a higher price then they paid for it on the street. A spread is the difference between the bid and the ask price of a security or asset.

buy side trading? Buy side firms are companies that purchase securities and other assets for their own needs or the needs of their clients Buy sides goal is to make value for the firm of the firms clients by identifying and purchasing underpriced assets. Since large purchases are made that can move markets, trading is kept private and away from the public Typically buy side traders do not have access to the street and must go through a sell side trader

Broker-dealer A broker dealer is a person of fiem in the business of buying ans selling securities. Operating as a broker; a broker dealer executes orders on behalf of clients. Operating as a dealer, a broker dealer trades on behalf of their firm and from there own account. Provide service and advice to clients, maker markets, and publish investment research

Market makers A market maker is a broker dealer firm that assumes the risk of holding a piticular security In order to facilitate trading of that security. In other words, market maker Makes a market for a particular security Examples include brokerage firms like Charles Schwab and Merrill Lynch

Stock highlight Netflix Inc. Symbol: NFLX Sector: Technology Sales or Revenue: 10.19B Industry: Internet Services P/E Ratio: 93.26 Shares Outstanding: 431.75M Shares Shorted: 27.85M Netflix has show incredible growth by growing 96.5% in the past year and 16,385% since its IPO back in 2002. NFLX has shown no signs of slowing down as the stock just broke the $200 range this week with its increasing catalogue of TV-Shows, movies, and original content.

Stock highlight Overstock.com, Inc. Symbol: OSTK Sector: Technology Sales or Revenue: 1.83B Industry: E-commerce & Auction Services P/E Ratio: -84.50 Shares Outstanding: 25M Shares Shorted: 1.88M Besides its success as an online retailer, due to Overstock.com’s recent investment in block chain technology, traders are seeing it as another way to invest in cryptocurrency. Overstock has grown 109.94% in the past 3 months and 37.12% in the past month despite the fact that it operates at a loss.

Market Discussion Bitcoin Continues to Surge In the past week, Bitcoin has broken $5000 and peaked at $5844 Dow has broken 23,000 today as markets continue to make record highs Dow is up 2.75% this month alone and up 26.75% in the past year The next two weeks are incredibly important for the future of the markets Earnings season should dictate where the market is going as we approach a 9 year bull market 30 year anniversary of Black Monday is this Thursday Flash Crash of ’87 – Largest Single Day Drop Ever (-22.61%)

Upcoming events Member bonding trip to Philadelphia – Date pending Market analyst committee election - 10/24