Introduction

Classes And Characteristics Of Equity Securities

Common

Preferred

Other

Rights

Warrants

Foreign Securities

ADRs

The Marketplace For Equity Securities

The Stock Exchanges

Transactions Executed on an Exchange

OTC

NASDAQ

Execution of Transactions

The OTC Bulletin Board

The “Pink Sheets”

Foreign Markets

Electronic Communication Networks (ECNs)

The Rise of the Internet as an Electronic Marketplace

Pricing Securities

Decimalization

Dividends, Yields And P/E Ratios

Dividends

Dividend Announcements

Categories of Dividends

Important Dates

Due Bills

Important Due Bill Dates

Dividend Processing Issues

International Equities

Calculating Yields For Equity Securities

P/E Ratios

Calculating a P/E Ratio

What Does the P/E Ratio Tell Investors

Important Operational Players

Securities Firm Units

Registered Representative

Order Room

Purchase and Sales Department (P&S)

Cashiering

The Dividend Department

The Proxy Department

The Reorganization Department

Transfer Agents

Clearing Corporations and Depositories

Trade Comparisons and Money Settlements

Membership in a Clearing Corporation

Regulatory Requirements

Depositories

The History and Role of Depositories

Ownership

Interfaces with Clearing Corporations

The Institutional Delivery System

International Equities

Clearance and Processing Issues

Options

Types Of Options

Call Options

Selling (Writing) Call Options

Put Options

Margin Transactions

Leverage

Risks

Regulatory Requirements

Margin Terminology

Glossary

Equity Securities Quiz