1. Chapter 12 Section 3 Notes Organized Stock Exchanges The New York Stock Exchange The oldest (1792) and largest (2800 companies) of the organized stock exchanges Has certain rules for both its members and the corporations listed on the exchange There are about 1400 seats (memberships) Members pay several million dollars for each seat Gives you the right to vote on rules and regulations that govern the exchange (profitability and size)

2. Chapter 12 Section 3 Notes Organized Stock Exchanges The American Stock Exchange Has approximately 750 listed stocks Was the 2 nd largest exchange but has been pasted up by some of the regional exchanges Companies listed on the AMEX tend to be smaller Regional Stock Exchanges Regional exchanges include the Chicago, Pacific (SF), Philadelphia, Boston and Memphis exchanges Many stocks listed on the regional exchanges are also listed on the NYSE Meets the needs of the smaller and middle-sized corporations in their region

3. Chapter 12 Section 3 Notes Organized Stock Exchanges Global Stock Exchanges Exchanges can be found in such cities as Sydney, Tokyo, Hong Kong, Singapore, Johannesburg, and Frankfurt Computer technology and electronic trading have linked these markets, so most major stocks can be traded around the clock

4. Chapter 12 Section 3 Notes Over-the-Counter Markets The majority of stocks in the United States are not traded on organized exchanges, they are traded on an over-the-counter market (electronic marketplace) NASDAQ The world’s largest OTC market Trading is executed with a sophisticated computer network that connects investors in more than 100 countries More than 4000 large and small companies are listed on NASDAQ (more than NYSE and AMEX combined)

6. Chapter 12 Section 3 Class Work Pages 332-333 1. Compare the similarities and differences between the Dow- Jones Industrial Average and the Standard and Poor’s 500. 2. Explain the difference between a bull and bear market. 3. Explain the difference between a spot markets and futures markets. 4. Explain how options contracts are different from futures contracts. 5. List 5 possible investments a person could make if funds were available. Rank the investments in order of how much risk each entails (from highest to lowest). Then rank the investments according to expected returns (from highest to lowest). What is the significance of the rankings to the risk- return relationship?