1. Primary Market Investment Banking Process –Basic services: Advice Underwriting Distribution –Competitive Underwriting –Negotiated underwritng Private Placement Public Placement Issuing Costs

2. Secondary Market The NYSE –Commission Brokers –Floor Brokers –Registered Traders –Specialists Maintain limit order book market making –Listing Requirements –Super DOT system The American Stock Exchange and other regional exchanges

3. Secondary Markets (contd) The Over-the-counter Market –NASDAQ The Third Market The Fourth Market –Instinet –POSIT

4. Types of Orders Round lot vs odd lot market order limit order stop order day order good-till-cancelled order program trading block trades

5. Margin trades Initial margin Maintenance margin Actual margin Short sales Types of trading costs –Bid-asked spreads –Commissions –Price impacts –Tax effects

6. Security Market Regulation Securities and Exchange Commission Commodity Futures Trading Commission Security Investors Protection Corporation