1. Chapter 12 Buying and Selling Investments

2. Slide 2 What Are Sources of Investing Information? 12-1 Researching Investments and Markets Magazines Newspapers Investor newsletters Annual reports Prospectus Internet

3. Slide 3 What Professional Advice Is Available? 12-1 Researching Investments and Markets A stockbroker buys and sells securities on behalf of others. o Full-service brokers o Discount brokers o Online brokers A financial planner helps people make investment decisions to meet goals. Banks and credit unions sell securities that they endorse.

4. Slide 4 How Are Financial Markets Designed? 12-1 Researching Investments and Markets Securities can be traded in the primary or secondary markets. The primary market is where new issues of securities are sold. The secondary market is where previously issued securities are sold.

5. Slide 5 12-1 Researching Investments and Markets How Are Financial Markets Designed? Securities exchanges are places for brokers to buy and sell securities for their clients. Over-the-counter market is a network of dealers and brokers who buy and sell securities not listed on an exchange. Direct investing involves buying securities directly from a corporation. Reinvesting involves getting stock dividends instead of cash dividends.

6. Slide 6 Focus On... Full Service or Discount Brokers? Discount brokers: o Charge a smaller fee o May charge extra for information Full service brokers: o Give sound investment advice for a higher fee When making a choice, consider: services, fees, location of nearest brokerage office, minimum deposits, etc. 12-1 Researching Investments and Markets