Chapter 19 Securities Markets Business Today. 2Prentice Hall Investment Choices Stocks – Preferred Stock – Common Stock Common-Stock Dividends Stock Splits.

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Presentation transcript:

Chapter 19 Securities Markets Business Today

2Prentice Hall Investment Choices Stocks – Preferred Stock – Common Stock Common-Stock Dividends Stock Splits Par Value Authorized Stock Issued Stock Unissued Stock

3Prentice Hall Investment Choices Corporate Bonds – Bond Attributes Bond Interest Rates Degree of Risk – Retirement of Debt Denomination Principal Secured Bonds Mortgage Bonds Debentures Convertible Bonds Junk Bonds Sinking Fund

4Prentice Hall Investment Choices Government Securities – Federal Government Issues – Municipal Bonds Other Investments – Options and Financial Futures – Derivatives – Commodities Treasury Bills Treasury Notes Treasury Bonds US Savings Bonds Municipal Bonds General Obligation Bonds Revenue Bonds Capital Gains Stock Option Hedge

5Prentice Hall Investors and Investing Institutional and Private Investors Investment Objectives Investment Portfolio – Asset Allocation – Mutual Funds Yield Growth Stocks Speculators Blue-chip Stocks Rate of Return Diversification Money-market Funds

6Prentice Hall Security Marketplace New Issues and the Secondary Market Security Exchanges – Stock Specialist – Auction Exchanges – Foreign and International Exchanges – NASDAQ Primary Market Secondary Market Stock Exchanges Auction Exchange Dealer Exchanges Market Makers Program Trading Arbitrage The-counter market (OTC)

7Prentice Hall Security Marketplace Trading Procedures – Orders to Buy and Sell – Margin Trading – Short Selling – Cost of Trading – Trading Online Broker Market Order Limit Order Open Order Discretionary Order Transaction Costs Full-service Brokerages Discount Brokerages

8Prentice Hall Analysis of the Financial News Sources of Information Broad Market Indicators and Economic News – Dow Jones Industrial Average – Other Indexes Interpreting Financial News Bull Market Bear Market Market Indexes Price-earnings Ratio