1. Seminar: Timely Topics for Today’s Business World Mr. Bernstein Exchanges in Today’s Market December 2015

2. Stock Pricing Prices of stocks go up and down constantly Movements theoretically based on the perception of future earnings and dividends an investor may receive Movements may be caused by temporary supply/demand imbalances (or perception of…) Decisions for the majority of transactions are made by a computer algorithm 2 Seminar: Timely Topics for Today’s Business World Mr. Bernstein

3. 3 Wells Fargo yesterday:

4. Where can stocks be bought and sold? Public securities primarily trade on regulated exchanges Access to the exchange is restricted to members only How do exchanges compete and earn profits? What is the advantage of executing trades on an exchange? Broker/dealers are regulated businesses which offer access to trading, securities safekeeping, accounting, investment advice or research, and other services Brokers typically charge a commission for executing trades How does this compare with investing in other asset classes - Bonds? Currencies? Oil? Gold? 4 Seminar: Timely Topics for Today’s Business World Mr. Bernstein

5. Central Exchange: The Buttonwood Tree How is a central exchange beneficial? 5 Seminar: Timely Topics for Today’s Business World Mr. Bernstein

6. Multiple Exchanges: Smart Order Routing (“aggregators”) Can brokers earn revenue by favoring one exchange in their order routing? Or larger customers over smaller ones? 6 Seminar: Timely Topics for Today’s Business World Mr. Bernstein

7. Markets and Information What is the advantage to trade information transparency? Does transparency lead to more price changes? Larger price changes? Fairer pricing overall? 7 Seminar: Timely Topics for Today’s Business World Mr. Bernstein