1. Investing in Equities, Futures,
And
OPTIONS

2. Efficient Market Hypothesis
The argument that stocks are always priced about right, and bargains are hard to find.

3. Portfolio diversification
Strategy of holding several investments to protect against risk.

4. Stockbroker
Person who buys or sells securities for investors.

5. Securities Exchanges
The physical place where buyers and sellers meet to exchange securities.

6. New York Stock Exchange
The oldest, largest and most prestigious of the organized stock exchanges.

7. American Stock Exchange
The fourth largest exchange. Companies represented tend to be smaller, and more speculative.

8. Regional Stock Exchanges
This includes exchanges such as Chicago, Pacific, Philadelphia, Boston, and Memphis. Serves small to middle size companies.

9. Global Stock Exchanges
Such as Sydney, Tokyo, Hong Kong, Singapore, Johannesburg and Frankfurt.

10. Over the Counter Market
(OTC) An electronic marketplace for securities that are not listed or traded on an organized exchange.

11. Dow Jones Industrial Average
(DJIA) The most popular and widely publicized measure of stock market performance. 30 representative stocks

12. Standard and Poor’s 500
A popular measure of stock performance using 500 representative stocks.

13. Spot Market
A market in which a transaction is made immediately at the prevailing price.

14. Futures markets
Contracts to buy or sell at a specific date in the future or at a specified price.

15. Options Market
Options are closely related to futures; the main difference being that options will give one of the parties (buyer or seller) the opportunity to back out of the future delivery.