1. Copyright 2005 Prentice- Hall, Inc.

2. Understanding Securities & Investments
Chapter 19
Understanding Securities & Investments

3. 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
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4. Copyright 2005 Prentice- Hall, Inc.
Securities Markets
Securities Are Asset-Based Claims
Stocks
Bonds
Markets
Primary- Private Placements & IPOs
Secondary
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5. Copyright 2005 Prentice- Hall, Inc.
Investment Banking
Securities & Exchange Commission
Investment Bank
Advise
Underwrite
Create Distribution
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6. Copyright 2005 Prentice- Hall, Inc.
Common Stock
Valuation
Par Value
Market Value
Book Value
Investment Traits
Blue Chip
“Old” Vs. “New” Economy
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7. Copyright 2005 Prentice- Hall, Inc.
Market-Value Growth
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8. Copyright 2005 Prentice- Hall, Inc.
Preferred Stock
Stated Par Value
Dividends
% Of Par Value
Cumulative
Priority Over Common
Callable
Call Price
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9. Copyright 2005 Prentice- Hall, Inc.
Major Stock Exchanges
Trading Floor
NYSE
ASE
OTC
NASDAQ
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10. Regional Stock Exchanges
Chicago (Midwest)
Pacific
Philadelphia
Boston
Cincinnati
Spokane
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11. Copyright 2005 Prentice- Hall, Inc.
Foreign Exchanges
London
Tokyo
Shanghai
Warsaw
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12. Copyright 2005 Prentice- Hall, Inc.
NASDAQ Global Growth
Canada
Japan
Europe
Educational
Shanghai
Bangladore
Hong Kong
Australia
South Korea
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13. Copyright 2005 Prentice- Hall, Inc.
Types Of Brokers
Discount
Full-Service
Online
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14. Growth Of Online Trading
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15. Copyright 2005 Prentice- Hall, Inc.
Bonds
U.S. Government
Municipal
Corporate
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16. Copyright 2005 Prentice- Hall, Inc.
Corporate Bonds
Registered
Bearer (Coupon)
Secured
Debentures
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17. Copyright 2005 Prentice- Hall, Inc.
Bond Retirement
Callable Bonds
Sinking fund
Serial
Convertible
Secondary Markets
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18. 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
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19. Copyright 2005 Prentice- Hall, Inc.
Commodities
Futures Contracts
Commodities Market
Margins
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20. Investment Portfolio Considerations
Diversification
Assets Allocation
Risk Tolerance
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21. Buying/Selling Securities
Stock Quotations
Bond Quotations
Mutual Fund Quotations
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22. Copyright 2005 Prentice- Hall, Inc.
Stock Quotations
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23. Mutual Fund Quotations
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24. Copyright 2005 Prentice- Hall, Inc.
Market Indexes
Bull vs. Bear Market
Dow Jones Industrial Average
S & P 500
NASDAQ Composite
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25. Copyright 2005 Prentice- Hall, Inc.
End Of Year DJIA ( )
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26. Copyright 2005 Prentice- Hall, Inc.
End Of Year DJIA ( )
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27. Copyright 2005 Prentice- Hall, Inc.
Bull Vs. Bear Market
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28. Copyright 2005 Prentice- Hall, Inc.
Stock Market Volumes
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29. Copyright 2005 Prentice- Hall, Inc.
Placing Orders
Market Order
Limit Order
Stop Order
Round Vs. Odd Lot
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30. Copyright 2005 Prentice- Hall, Inc.
Financing Purchases
Margin Trading
Short Sales
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31. Securities Market Regulations
Circuit Breakers
Program Trading
Securities & Exchange Commission
Prospectus
Insider Trading
Blue-Sky Laws
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