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Economics New York Stock Exchange
Terms in this set (55)
anything you own/ownership "ownership of" Examples: stock, real estate
(EMH) Efficient Market Hypothesis
help explain pricing of equities Examples: E-Market
Buy different kinds of stock
a broker who assists buys or sells equities for clients. Purchasing them at stock exchange, securities from inventory, or buys them from other brokers. get money from comission from that person from that person's stock by _%
places where buyers/sellers meet to trade securities (pay free to join and trades take place on floor of exchange or virtual) example: market place
New York Stock Exchange (Euro Next)
merged with european stock exchange -symbol of economy -bull the actual symbol (means strength and fast moving) -theres a symbol for each stock 1 to 4 letters like APPLE is AAPL
different from nyse-euro next but similar concept has stock like google and apple
red/green % depending on if the stock increases/decreases
The difference b/w the last trade and the previous day's price.
opens @ 9:30am
closes (closing) @ 4:00pm
Buy low, Sell high
(buy at a valley sell at a peek)
distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
dividend/current stock price
the rate of return on a stockholders investment (dividend)
how to make $ off the NYSE-EURONEXT
1) long term investment of stocks that will increase a lot over time
2) company that issues dividends
Price per earnings ratio (P/E)
company making v. The price of stock
-want a low ratio
total # of shares sold in the last day
-like if its high the stock is in play for good if bad you should sell it
52 week high and low
the highest and lowest prices paid for the stock during the past year
what the market is doing before the market actually opens
Regional Stock Exchange
describe stock exchanges that operates outside of the country's main financial center in New York City. A regional stock exchange operates in the trading of listed and over-the-counter (OTC) equities under the SEC's Unlisted Trading Privileges (UTP) rule.
Global Stock Exchange
Over-the-counter market (OTC)
(virtual) electronic marketplace for securities
(NMS) National Market System
listed in OTC
A system with two main functions:
1. To facilitate trading of OTC stocks whose size, profitability, and trading activity meet specific criteria.
2. To post prices for securities on the NYSE and other regional exchanges simultaneously, allowing investors to obtain the best price.
national association of securities dealers automated quotation (provides info on stocks this group trades) VIRTUAL
DIJA (Dow-Jones Industrial Average)
Most popular and widely publicized measure of stock market performance on NYSE-EURO NEXT (only 30 companies on NYSE)
S & P
500 representatives stocks an indicator of overall market performance this is listed on the NYSE, OTC markets
Bull (charge) Market
Bear (hibernate) Market
prices go down
transaction made inmediately at prevailing price (on the spot selling/buying)
Futures Contracts (best now for the future)
agreement to buy or sell at the specific date in the future at predetermined price
marketplace in which futures contract or "futures" are bought and sold
commodities started as farming bets like chicago mercantile exchange
contracts provide right to purchase or sell commodities or financial assets
In economics, a commodity is a marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services.
the right to buy a share of stock at a specific price some time in the future
right to sell a share of stock at a specified price in the future
are the markets in which options are traded
Most futures also sell options.
selling short or (sell now buy later) borrowing will pay them back when you buy it back eventually
A service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security
The ticker tape reporting round lot transactions in NYSE listed securities that take place on the NYSE or any of the participating regional stock exchanges and other markets. Similarly, ~other securities listed on regional stock exchanges, are reported on a separate tape
The high-speed system is continuously updated to provide the last sales price and volume of any securities transactions in listed stocks to the public.
is an agency of the United States federal government. It holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States
intital public offering (I.P.O)
or the stock market launch is a type of public offering in which shares of stock in a company usually are sold to institutional investors, that in turn sell to the general public, on a securities exchange, for the first time.
is an electronic system used to place orders for stocks that are listed, which usually refers to those trading on the New York Stock Exchange (NYSE).
Most stock orders reach the trading floor through this electronic order-routing system. After the order is completed in the auction market, an execution report is transmitted back to the NYSE member firm.
is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
A column that shows the number of groups of 100 shares that were traded on a specific day.
or money is needed to expand a company
How much a product or service is in demand will affect the stock price
1) How much do you pay if you had bought 100 shares of XYZ at the last sale?
2) what was yesterday's closing price for XYZ?
3) How many shares of XYZ were traded since the market opened this morning?
4)What would the total dividend be on the 300 shares of XYZ?
5) If you bought 100 shares of XYZ at the lowest price of the year and sold it at the highest price of the year, how much money would you make (excluding any taxes or commission fees)?
6)You bought 200 shares at the day's high and sold at last trade. How much did you make/lose?
This market professional oversees the orderly trading of specific stocks and stands outside the trading posts on the trading floor.
This market professional located in the booths around the perimeter of the floor, buys and sells securities for the general public. Orders are electronically routed to trading posts, booths or handheld computers.
All buying and selling of stock occurs at these 17 stations staffed by specialists and trading assistants on the trading floor.
A wireless, handheld tool used by floor brokers to receive orders and improve the flow of information between customers and the point of sale.
Post Display Units
These high-definition screens, located above the trading posts, provide a variety of information about each stock that is traded at that location.
This represents membership in the NYSE and the right to trade on the NYSE Trading Floor
Sequence in that happened when someone purchases stock
1) Amanda Smith of Hartford, CT, decides to buy Great Computer Company stock. She calls the local stockbroker who works for a firm that is a member of the NYSE.
2) Amanda asks her stockbroker the current price for Great Computer Company stock. The broker checks the quote (the highest bid to buy, the lowest offer to sell) for the Great Computer Company stock using an electronic market data system.
3) The stockbroker gives Amanda the current price of Great Computer Company and she instructs the stockbroker to buy 100 shares.
4) The broker sends the order to the Trading Floor of the NYSE electronically via the SuperDOT system to the specialist's workstation or through Broker Booth Support System (BBSS) the broker's handheld computer.
5) At the trading post, the specialist that handles Great Computer Company stock makes sure the transaction is executed in a fair and orderly manner. Amanda's order competes with other orders in the Great Computer Company plus any applicable commissions.
6) After the transaction is executed, the specialist's workstation sends notice to Amanda's firm (the buyer) and to the seller's firm, as well as to the consolidated tape so that a written record is made.
****7) The transaction is reported by computer and appears within seconds on the consolidated tape displays across the country and around the world.
****8) The transaction is processed electronically. Amanda receives a trade confirmation from her broker's firm describing the trade, and the exact amount she owes for the 100 shares of Great Computer Company plus any applicable commissions.
The regulatory pyramid
NYSE and other self-regulatory organizations
individual brokerage firms
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Common set 1
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