1. Electronic Trading Dr. Aiman H. El-Maleh Computer Engineering Department Dr. Aiman H. El-Maleh Computer Engineering Department

2. COE-KFUPM Day 3-2 OutlineOutline n Basics of Investing n Investing Strategies n Quotes & Research Stock quotes Stock quotes Stock charts Stock charts Stock research Stock research n Opening Etrading Account n Summary n Basics of Investing n Investing Strategies n Quotes & Research Stock quotes Stock quotes Stock charts Stock charts Stock research Stock research n Opening Etrading Account n Summary

3. COE-KFUPM Day 3-3 Why Invest at All? n Maintain purchasing power to cope with even mild inflation n Investing is fun Pitting your intellect against investing community Pitting your intellect against investing community Rewarded with increase in assets Rewarded with increase in assets n Investment returns can accumulate at a faster rate than your salary. n A successful investor puts natural curiosity and intellectual interest to work to earn more money. n Personal wealth n Maintain purchasing power to cope with even mild inflation n Investing is fun Pitting your intellect against investing community Pitting your intellect against investing community Rewarded with increase in assets Rewarded with increase in assets n Investment returns can accumulate at a faster rate than your salary. n A successful investor puts natural curiosity and intellectual interest to work to earn more money. n Personal wealth

4. COE-KFUPM Day 3-4 Where Stocks Trade n Stocks traded on securities and commodities exchanges or over the counter n Exchanges members handle trades for themselves and their clients. n Securities and options are regulated by SEC (Securities and Exchange Commission) New York Stock Exchange (NYSE) New York Stock Exchange (NYSE) American Stock Exchange (AMEX) American Stock Exchange (AMEX) n For the over-the-counter (OTC) market: trades are handled electronically—either via telephone or computer. trades are handled electronically—either via telephone or computer. Done through dealers Done through dealers n Regulated by the National Association of Securities Dealers, NASDAQ provides the automated quotes for this market. n Stocks traded on securities and commodities exchanges or over the counter n Exchanges members handle trades for themselves and their clients. n Securities and options are regulated by SEC (Securities and Exchange Commission) New York Stock Exchange (NYSE) New York Stock Exchange (NYSE) American Stock Exchange (AMEX) American Stock Exchange (AMEX) n For the over-the-counter (OTC) market: trades are handled electronically—either via telephone or computer. trades are handled electronically—either via telephone or computer. Done through dealers Done through dealers n Regulated by the National Association of Securities Dealers, NASDAQ provides the automated quotes for this market.

5. COE-KFUPM Day 3-5 Stock Market Cycle n Stock market moves in cycles: fluctuates. n Get wonderful bargains every few years and sell again at high prices a few years later. n With this principle, you will prosper if you don't become too paralyzed to act. n Stock market is a voting machine, polling investors on the future, not the present. n The worse you feel, news is bad, the safer the market. n The better you feel, news is good, the closer you are to a top. n Stock market moves in cycles: fluctuates. n Get wonderful bargains every few years and sell again at high prices a few years later. n With this principle, you will prosper if you don't become too paralyzed to act. n Stock market is a voting machine, polling investors on the future, not the present. n The worse you feel, news is bad, the safer the market. n The better you feel, news is good, the closer you are to a top.

6. COE-KFUPM Day 3-6 Stock Glossaries n Shares Outstanding Shares of common stock currently owned by investors. Shares of common stock currently owned by investors. n Volume total number of shares traded of a stock during a specific time period. total number of shares traded of a stock during a specific time period. n Revenues net sales of the company plus any other revenues associated with business operations. net sales of the company plus any other revenues associated with business operations. does not include dividends, interest income or non-operating income. does not include dividends, interest income or non-operating income. n Net Earnings profit after all costs, expenses and taxes have been paid. profit after all costs, expenses and taxes have been paid. n Dividends cash payment, per share, to shareholders every quarter. cash payment, per share, to shareholders every quarter. part of profits not reinvested in the company. part of profits not reinvested in the company. n Shares Outstanding Shares of common stock currently owned by investors. Shares of common stock currently owned by investors. n Volume total number of shares traded of a stock during a specific time period. total number of shares traded of a stock during a specific time period. n Revenues net sales of the company plus any other revenues associated with business operations. net sales of the company plus any other revenues associated with business operations. does not include dividends, interest income or non-operating income. does not include dividends, interest income or non-operating income. n Net Earnings profit after all costs, expenses and taxes have been paid. profit after all costs, expenses and taxes have been paid. n Dividends cash payment, per share, to shareholders every quarter. cash payment, per share, to shareholders every quarter. part of profits not reinvested in the company. part of profits not reinvested in the company.

7. COE-KFUPM Day 3-7 Stock Glossaries – Cont. n Total Return price change plus dividend return over last 12 months price change plus dividend return over last 12 months n Yield annual rate of return on a stock as paid in dividends. annual rate of return on a stock as paid in dividends. calculated by dividing latest dividend rate by latest closing price and multiplying by 100. calculated by dividing latest dividend rate by latest closing price and multiplying by 100. latest dividend rate is the total dividends paid in the past 12 months. latest dividend rate is the total dividends paid in the past 12 months.dividends n Net Earnings-Per-Share (EPS) net earnings allocated to each share of stock. net earnings allocated to each share of stock. calculated by dividing net earnings by common shares outstanding calculated by dividing net earnings by common shares outstandingnet earningsnet earnings n Total Return price change plus dividend return over last 12 months price change plus dividend return over last 12 months n Yield annual rate of return on a stock as paid in dividends. annual rate of return on a stock as paid in dividends. calculated by dividing latest dividend rate by latest closing price and multiplying by 100. calculated by dividing latest dividend rate by latest closing price and multiplying by 100. latest dividend rate is the total dividends paid in the past 12 months. latest dividend rate is the total dividends paid in the past 12 months.dividends n Net Earnings-Per-Share (EPS) net earnings allocated to each share of stock. net earnings allocated to each share of stock. calculated by dividing net earnings by common shares outstanding calculated by dividing net earnings by common shares outstandingnet earningsnet earnings

8. COE-KFUPM Day 3-8 Stock Glossaries – Cont. n Estimated EPS Growth mean estimate of EPS growth, derived from estimates from Wall Street analysts. mean estimate of EPS growth, derived from estimates from Wall Street analysts. provided by Zacks Investment Research. provided by Zacks Investment Research. n Forward P/E calculated using latest closing price of stock divided by t latest EPS estimate calculated using latest closing price of stock divided by t latest EPS estimate n PEG ratio (price-to-earnings-growth) calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate. calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate.forward P/EEPSforward P/EEPS A PEG ratio of less than one is considered a sign that a stock is a good value. A PEG ratio of less than one is considered a sign that a stock is a good value. The higher the PEG, the pricier the stock. The higher the PEG, the pricier the stock. n Estimated EPS Growth mean estimate of EPS growth, derived from estimates from Wall Street analysts. mean estimate of EPS growth, derived from estimates from Wall Street analysts. provided by Zacks Investment Research. provided by Zacks Investment Research. n Forward P/E calculated using latest closing price of stock divided by t latest EPS estimate calculated using latest closing price of stock divided by t latest EPS estimate n PEG ratio (price-to-earnings-growth) calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate. calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate.forward P/EEPSforward P/EEPS A PEG ratio of less than one is considered a sign that a stock is a good value. A PEG ratio of less than one is considered a sign that a stock is a good value. The higher the PEG, the pricier the stock. The higher the PEG, the pricier the stock.

9. COE-KFUPM Day 3-9 Shorting Stocks n Buying a stock is taking a long position. n Shorting a stock: sell the stocks and then buy them when the price falls. n You decide that price of a stock is going to fall. n Call broker ordering to short, "selling" the stocks at the current price. n Broker rounds up the shares in order to sell them for you loans you the certificates from his stash loans you the certificates from his stash borrows them from another broker. borrows them from another broker. n When the price falls, you buy the shares at the lower price, covering the borrowed shares. n Buying a stock is taking a long position. n Shorting a stock: sell the stocks and then buy them when the price falls. n You decide that price of a stock is going to fall. n Call broker ordering to short, "selling" the stocks at the current price. n Broker rounds up the shares in order to sell them for you loans you the certificates from his stash loans you the certificates from his stash borrows them from another broker. borrows them from another broker. n When the price falls, you buy the shares at the lower price, covering the borrowed shares.

10. COE-KFUPM Day 3-10 Investing Strategies n Investing is a simple process: Choose a stock in which to take a position Choose a stock in which to take a position Commit to the position by executing a trade Commit to the position by executing a trade Monitor the trade to see if it fits your expectations Monitor the trade to see if it fits your expectations Close the trade when your expectations are met or lost Close the trade when your expectations are met or lost n Stock Selection A good Watch List is the key to successful stock selection A good Watch List is the key to successful stock selection Compare stock performance with other stocks you're watching Compare stock performance with other stocks you're watching Collect other information about that stock Collect other information about that stock Price rangePrice range NewsNews Analysts reportsAnalysts reports n Investing is a simple process: Choose a stock in which to take a position Choose a stock in which to take a position Commit to the position by executing a trade Commit to the position by executing a trade Monitor the trade to see if it fits your expectations Monitor the trade to see if it fits your expectations Close the trade when your expectations are met or lost Close the trade when your expectations are met or lost n Stock Selection A good Watch List is the key to successful stock selection A good Watch List is the key to successful stock selection Compare stock performance with other stocks you're watching Compare stock performance with other stocks you're watching Collect other information about that stock Collect other information about that stock Price rangePrice range NewsNews Analysts reportsAnalysts reports

11. COE-KFUPM Day 3-11 Investing Strategies – Cont. n Commit to a Position Execute a long or short term trade Execute a long or short term trade Timing is important Timing is important Share your decision with a financial advisor Share your decision with a financial advisor n Monitoring the Position Most critical aspect of the trading process Most critical aspect of the trading process What the investment community thinks of your picks What the investment community thinks of your picks If pick is up increase your position to increase your gains If pick is up increase your position to increase your gains If pick is going down, you have to know when to cut your losses. If pick is going down, you have to know when to cut your losses. n Closing the Position To make money you have to close the trade. To make money you have to close the trade. n Commit to a Position Execute a long or short term trade Execute a long or short term trade Timing is important Timing is important Share your decision with a financial advisor Share your decision with a financial advisor n Monitoring the Position Most critical aspect of the trading process Most critical aspect of the trading process What the investment community thinks of your picks What the investment community thinks of your picks If pick is up increase your position to increase your gains If pick is up increase your position to increase your gains If pick is going down, you have to know when to cut your losses. If pick is going down, you have to know when to cut your losses. n Closing the Position To make money you have to close the trade. To make money you have to close the trade.

12. COE-KFUPM Day 3-12 Value and Growth Strategies n One of the most popular ways of studying stocks is called fundamental analysis. n Figure out true stock value based on basic information such as growth of sales and profits. n Growth Stocks Predict which companies will grow faster in the future Predict which companies will grow faster in the future Stock grows its earnings and revenues faster than average Stock grows its earnings and revenues faster than average Famous investor: Peter Lynch (Magellan mutual fund) Famous investor: Peter Lynch (Magellan mutual fund) n Value Stocks Look for stocks that have been overlooked by other investors and may have a "hidden value." Look for stocks that have been overlooked by other investors and may have a "hidden value." Famous investor: Warren Buffet (Berkshire Hathaway) Famous investor: Warren Buffet (Berkshire Hathaway) n One of the most popular ways of studying stocks is called fundamental analysis. n Figure out true stock value based on basic information such as growth of sales and profits. n Growth Stocks Predict which companies will grow faster in the future Predict which companies will grow faster in the future Stock grows its earnings and revenues faster than average Stock grows its earnings and revenues faster than average Famous investor: Peter Lynch (Magellan mutual fund) Famous investor: Peter Lynch (Magellan mutual fund) n Value Stocks Look for stocks that have been overlooked by other investors and may have a "hidden value." Look for stocks that have been overlooked by other investors and may have a "hidden value." Famous investor: Warren Buffet (Berkshire Hathaway) Famous investor: Warren Buffet (Berkshire Hathaway)

13. COE-KFUPM Day 3-13 Importance of Diversification n Diversification means building a portfolio with securities from different asset classes. n Example: a portfolio that includes a certain percentage of stocks and bonds. bonds tend to do well when stocks don't bonds tend to do well when stocks don't n Buy securities not affected by the same variables. Utilities, grocery stores, and airlines are completely different businesses Utilities, grocery stores, and airlines are completely different businesses n A diversified portfolio will have less volatility, and steadier returns. n Overall return lower than in an undiversified portfolio. n Diversification means building a portfolio with securities from different asset classes. n Example: a portfolio that includes a certain percentage of stocks and bonds. bonds tend to do well when stocks don't bonds tend to do well when stocks don't n Buy securities not affected by the same variables. Utilities, grocery stores, and airlines are completely different businesses Utilities, grocery stores, and airlines are completely different businesses n A diversified portfolio will have less volatility, and steadier returns. n Overall return lower than in an undiversified portfolio.

14. COE-KFUPM Day 3-14 Mutual Funds Investing n Most mutual funds invest in stocks, are called equity funds. n Mutual funds are categorized by market capitalization of stocks in their portfolios. n Some funds specialize in investing in Small-cap stocks < $500 million Small-cap stocks < $500 million Mid-cap stocks $500 million to $5 billion Mid-cap stocks $500 million to $5 billion Large-cap stocks > $5 billion Large-cap stocks > $5 billion n Equity fund managers styles of stock picking Value approach Value approach Growth approach Growth approach Blend approach Blend approach n Most mutual funds invest in stocks, are called equity funds. n Mutual funds are categorized by market capitalization of stocks in their portfolios. n Some funds specialize in investing in Small-cap stocks < $500 million Small-cap stocks < $500 million Mid-cap stocks $500 million to $5 billion Mid-cap stocks $500 million to $5 billion Large-cap stocks > $5 billion Large-cap stocks > $5 billion n Equity fund managers styles of stock picking Value approach Value approach Growth approach Growth approach Blend approach Blend approach

15. COE-KFUPM Day 3-15 Index Fund Investing n An index fund builds its portfolio by buying all the stocks in a particular index. n Most popular index of stock index funds is the Standard and Poor's 500. n Key distinction between stock index funds and "actively managed" mutual funds No need for stock selection No need for stock selection No need for a team of highly-paid stock analystsNo need for a team of highly-paid stock analysts Much cheaper to run than an active fund Much cheaper to run than an active fund Perform better than actively managed funds Perform better than actively managed funds In 1998, 85% of all mutual funds that were set up to beat the S&P 500 failed to meet that goal.In 1998, 85% of all mutual funds that were set up to beat the S&P 500 failed to meet that goal. n An index fund builds its portfolio by buying all the stocks in a particular index. n Most popular index of stock index funds is the Standard and Poor's 500. n Key distinction between stock index funds and "actively managed" mutual funds No need for stock selection No need for stock selection No need for a team of highly-paid stock analystsNo need for a team of highly-paid stock analysts Much cheaper to run than an active fund Much cheaper to run than an active fund Perform better than actively managed funds Perform better than actively managed funds In 1998, 85% of all mutual funds that were set up to beat the S&P 500 failed to meet that goal.In 1998, 85% of all mutual funds that were set up to beat the S&P 500 failed to meet that goal.

16. COE-KFUPM Day 3-16 Impact of News on Investment n Chasing a hot stock or attempting to time the swings in the market costly to implement, costly to implement, extremely low probability of success, extremely low probability of success, ineffective in adding value to your portfolio. ineffective in adding value to your portfolio. n When you hear news about a company, you need to figure out its impact on your investment news likely to affect the profitability of the stock in the future, short-term and long-term? news likely to affect the profitability of the stock in the future, short-term and long-term? problem specific to this company, or affect entire industry? problem specific to this company, or affect entire industry? how news likely to affect performance of investment in your time frame? how news likely to affect performance of investment in your time frame? time frame analyst used in making "downgrade", "upgrade" ? time frame analyst used in making "downgrade", "upgrade" ? n Chasing a hot stock or attempting to time the swings in the market costly to implement, costly to implement, extremely low probability of success, extremely low probability of success, ineffective in adding value to your portfolio. ineffective in adding value to your portfolio. n When you hear news about a company, you need to figure out its impact on your investment news likely to affect the profitability of the stock in the future, short-term and long-term? news likely to affect the profitability of the stock in the future, short-term and long-term? problem specific to this company, or affect entire industry? problem specific to this company, or affect entire industry? how news likely to affect performance of investment in your time frame? how news likely to affect performance of investment in your time frame? time frame analyst used in making "downgrade", "upgrade" ? time frame analyst used in making "downgrade", "upgrade" ?

17. COE-KFUPM Day 3-17 Do not Rush to an Investment n Good investing is an exercise in controlled fussiness. n Safest strategy is being very hard to please. n Focus on not make avoidable mistakes. n Insist on waiting for a stock to satisfy you completely before you risk your capital. n Take your time, plenty of other possibilities. n Good investing is an exercise in controlled fussiness. n Safest strategy is being very hard to please. n Focus on not make avoidable mistakes. n Insist on waiting for a stock to satisfy you completely before you risk your capital. n Take your time, plenty of other possibilities.

18. COE-KFUPM Day 3-18 Common Mistakes n Panic selling will sell at low, possibly below its cost and at a loss compared with its earlier prices. will sell at low, possibly below its cost and at a loss compared with its earlier prices. most who sell near a bottom fail to reenter until well toward the next top. most who sell near a bottom fail to reenter until well toward the next top. n Never selling far from a perfect approach in most cases far from a perfect approach in most cases n Investing in Penny stocks riskiest investments riskiest investments the remnants of the stock market the remnants of the stock market n Panic selling will sell at low, possibly below its cost and at a loss compared with its earlier prices. will sell at low, possibly below its cost and at a loss compared with its earlier prices. most who sell near a bottom fail to reenter until well toward the next top. most who sell near a bottom fail to reenter until well toward the next top. n Never selling far from a perfect approach in most cases far from a perfect approach in most cases n Investing in Penny stocks riskiest investments riskiest investments the remnants of the stock market the remnants of the stock market

19. COE-KFUPM Day 3-19 Tap the Power of the Internet n Internet shattered barriers between Wall Street and Main Street. n Previously, took a lot of manpower and computing power to research a stock. n With internet you can retrieve in seconds sock price and volume information retrieve in seconds sock price and volume information plot intraday stock graphs or historical graphs for one week or one month, one year or twenty plot intraday stock graphs or historical graphs for one week or one month, one year or twenty up-to-date company news up-to-date company news inspect corporate financial statements filed with the Securities and Exchange Commission (SEC). inspect corporate financial statements filed with the Securities and Exchange Commission (SEC). Insider information Insider information n Internet shattered barriers between Wall Street and Main Street. n Previously, took a lot of manpower and computing power to research a stock. n With internet you can retrieve in seconds sock price and volume information retrieve in seconds sock price and volume information plot intraday stock graphs or historical graphs for one week or one month, one year or twenty plot intraday stock graphs or historical graphs for one week or one month, one year or twenty up-to-date company news up-to-date company news inspect corporate financial statements filed with the Securities and Exchange Commission (SEC). inspect corporate financial statements filed with the Securities and Exchange Commission (SEC). Insider information Insider information

20. COE-KFUPM Day 3-20 Quotes & Research n Many excellent internet sites for stock quotes and research finance.yahoo.com finance.yahoo.com www.excite.com www.excite.com www.excite.com www.etrade.com www.etrade.com www.etrade.com n Most stock quotes are delayed by 20 minutes n Free real time quotes with account n Example: finance.yahoo.com Stock Quote Stock Quote Charts: stock price ranges Charts: stock price ranges Research Research News News SEC & insider SEC & insider n Many excellent internet sites for stock quotes and research finance.yahoo.com finance.yahoo.com www.excite.com www.excite.com www.excite.com www.etrade.com www.etrade.com www.etrade.com n Most stock quotes are delayed by 20 minutes n Free real time quotes with account n Example: finance.yahoo.com Stock Quote Stock Quote Charts: stock price ranges Charts: stock price ranges Research Research News News SEC & insider SEC & insider

21. COE-KFUPM Day 3-21 Stock Quotes n Basics : Symbol Symbol Name Name Last Trade Last Trade Change & Percent Change & Percent Volume Volume Average Daily Volume Average Daily Volume n Fundamentals : Earnings/Share Earnings/Share P/E Ratio P/E Ratio Dividend Pay Date Dividend Pay Date Dividend/Share Dividend/Share Market Capitalization Market Capitalization n Basics : Symbol Symbol Name Name Last Trade Last Trade Change & Percent Change & Percent Volume Volume Average Daily Volume Average Daily Volume n Fundamentals : Earnings/Share Earnings/Share P/E Ratio P/E Ratio Dividend Pay Date Dividend Pay Date Dividend/Share Dividend/Share Market Capitalization Market Capitalization n Details : Bid/Ask Bid/Ask Previous Close Previous Close Open Open Day's Range Day's Range 52-week Range 52-week Range n Portfolios: Shares Owned Shares Owned Price Paid Price Paid Commission Commission Holdings Value Holdings Value Day's Value Change Day's Value Change Holdings Gain & Percent Holdings Gain & Percent Trade Date Trade Date Annualized Gain Annualized Gain

22. COE-KFUPM Day 3-22 Stock Quote Example SymbLastChangeVolume Day's Range 52-week Range INTC 131 1 / 8 -5 11 / 16 -4.16%22,361,100130 7 / 8 - 139 1 / 16 50 1 / 8 - 145 3 / 8 Intel Corporation

23. COE-KFUPM Day 3-23 Stock Quote - Detailed Last Trade 2:55PM · 131 3 / 8 Change + 1 / 4 (+0.19%) Prev Cls 131 1 / 8 Volu me 21,95 9,200 Div Date Jun 1 Small: [ 1d | 5d | 1y | none ] Big: [ 1d | 5d | 3m | 1y | 2y | 5y | max ]1d5dnone1d5d3m1y2y 5ymax Day's Range 127 31 / 64 - 134 1 / 4 Bid 131 5 / 16 As k 13 1 3 / 8 Ope n 130 Avg Vol 27,56 1,364 Ex- Div May 3 52-week Range 50 1 / 8 - 145 3 / 8 Earn /Shr 2.11 P/ E 62. 14 Mkt Cap 439. 1B Div/S hr 0.12 Yiel d 0.09

24. COE-KFUPM Day 3-24 Stock Charts Intel Corporation – 1 year chart

25. COE-KFUPM Day 3-25 Stock Charts – Cont. Intel Corporation – 5 year chart

26. COE-KFUPM Day 3-26 Stock Charts – Cont. Intel Corporation – 1 year chart vs. S&P500

27. COE-KFUPM Day 3-27 Stock Research Number of brokers recomme nding as: Strong Buy22 Moderate Buy12 Hold6 Moderate Sell0 Strong Sell0 Average Recommendation (Strong Buy) 1.00 - 5.00 (Strong Sell) This Week1.52 Last Week1.57 Change0.1 Earnings Per Share Last Quarter (Dec1999) 0.69 Surprise9.5% Consensus Estimates This Quarter (Mar 00)0.68 This Year(Dec 00)2.91 Next Year3.39 Research Summary

28. COE-KFUPM Day 3-28 Stock Research- Cont. Dec 1998Mar 1999Jun 1999Sep 1999Dec 1999 Estimate Actual Difference % Surprise 0.53 0.60 0.07 12.26 % 0.54 0.57 0.03 5.56 % 0.54 0.51 -0.03 -5.56 % 0.57 0.55 -0.02 -3.51 % 0.63 0.69 0.06 9.52 % Earnings History & Growth Last 5 Years This Year (Dec 00) Next Year (Dec 01) Next 5 Years Price/Ear n (Dec 00) PEG Ratio (Dec 00) Intel Corp ELEC COMP- SEMIC S&P 500 16.5 % 10.8 % 9.2 % 25.3 % 30.4 % 11.6 % 16.5 % 36.7 % 8.5 % 19.3 % 30.8 % 15.2 % 45.0 57.6 26.7 1.78 1.89 2.30

29. COE-KFUPM Day 3-29 Opening Etrading Account n There are several companies to Etrade with. n Types of accounts: Cash Cash Margin Margin n E*trade: www.etrade.com www.etrade.com $20 per trade (upto 5000 shares) $20 per trade (upto 5000 shares) $1000 for cash account $1000 for cash account $2000 for margin account $2000 for margin account Free real time quotes Free real time quotes n Charles Shwab: www.shwab.com www.shwab.com $30 per trade (upto 1000 shares) $30 per trade (upto 1000 shares) $5000 for margin account $5000 for margin account Free real time quotes Free real time quotes n There are several companies to Etrade with. n Types of accounts: Cash Cash Margin Margin n E*trade: www.etrade.com www.etrade.com $20 per trade (upto 5000 shares) $20 per trade (upto 5000 shares) $1000 for cash account $1000 for cash account $2000 for margin account $2000 for margin account Free real time quotes Free real time quotes n Charles Shwab: www.shwab.com www.shwab.com $30 per trade (upto 1000 shares) $30 per trade (upto 1000 shares) $5000 for margin account $5000 for margin account Free real time quotes Free real time quotes

30. COE-KFUPM Day 3-30 Opening Etrading Account – Cont. n Datek Online: www.datek.com www.datek.com $10 per trade (upto 5000 shares) $10 per trade (upto 5000 shares) $2000 for margin account $2000 for margin account Free real time quotes Free real time quotes n National Discount Brokers: www.ndb.com www.ndb.com $15 market order, $20 limit order per trade (upto 5000 shares) $15 market order, $20 limit order per trade (upto 5000 shares) No minimum balance to open account No minimum balance to open account n TD Waterhouse: www.tdwaterhouse.com www.tdwaterhouse.com $12 per trade (upto 5000 shares) $12 per trade (upto 5000 shares) n www.ameritrade.com n Ameritrade: www.ameritrade.com www.ameritrade.com $8 market orders, $13 limit and stop orders (upto 10,1000 shares) Free real time quotes n Datek Online: www.datek.com www.datek.com $10 per trade (upto 5000 shares) $10 per trade (upto 5000 shares) $2000 for margin account $2000 for margin account Free real time quotes Free real time quotes n National Discount Brokers: www.ndb.com www.ndb.com $15 market order, $20 limit order per trade (upto 5000 shares) $15 market order, $20 limit order per trade (upto 5000 shares) No minimum balance to open account No minimum balance to open account n TD Waterhouse: www.tdwaterhouse.com www.tdwaterhouse.com $12 per trade (upto 5000 shares) $12 per trade (upto 5000 shares) n www.ameritrade.com n Ameritrade: www.ameritrade.com www.ameritrade.com $8 market orders, $13 limit and stop orders (upto 10,1000 shares) Free real time quotes

31. COE-KFUPM Day 3-31 SummarySummary n Investing is important to maintain money power n Before investing learn Investing basics Investing basics Investing strategies Investing strategies n Internet has made trading simple n Tap the power of the internet in stock research and collecting information n Extensive information resources and tools n Any one can make good money by electronic trading n Investing is important to maintain money power n Before investing learn Investing basics Investing basics Investing strategies Investing strategies n Internet has made trading simple n Tap the power of the internet in stock research and collecting information n Extensive information resources and tools n Any one can make good money by electronic trading