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Introduction | |
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The Stock Market: What the Stock Market Has to Offer | |
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Why Stocks Are Offered | |
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The Size of the Stock Market | |
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A Word About Bonds | |
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Why Individuals and Institutions Buy Stocks | |
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Dividends | |
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Capital Gains, or Growth | |
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Short Selling | |
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Risks and Rewards of Investing | |
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Common Stocks | |
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Preferred Stocks | |
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Stock Rights | |
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Stock Warrants | |
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Summary | |
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Reading the Financial Press: Determining Share Value, Determining Your Investment Return | |
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Cash Accounts | |
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Margin Accounts | |
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Security Positions: Long, Short, Flat | |
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Pricing Stocks: Points and Fractions | |
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The Figuration of Current Yield | |
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Newspaper Listings | |
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The Initial Public Offering: Getting the Stocks to the Marketplace | |
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The Primary Market--How Busineses Are Capitalized | |
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Incorporating the Business | |
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The Initial Public Offering (IPO) | |
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After the Offering Is Completed | |
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Inside the Brokerage Firm: Who Does What? | |
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Full Service Versus Discount | |
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Selecting a Brokerage Firm and an Account Executive | |
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The Sales Assistant | |
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The Secondary Market: Executing Orders on the Exchange Floor | |
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The New York Stock Exchange | |
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Listing Requirements and Criteria of the NYSE | |
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NYSE Maintenance Listing Requirements/Delisting from NYSE | |
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The NYSE Floor | |
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The Delivery of Orders to the NYSE: Superdot and the Broker Booth Support System | |
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NYSE's Online Comparison System | |
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The Auction System | |
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How Orders Are Executed in the Crowd | |
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Crossing Stock | |
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After (Off) Hours Trading--A/K/A Crossing Sessions | |
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The Short Sale | |
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Institutional Trades | |
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Decimalization | |
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Other Important Features of the NYSE | |
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AMEX--The American Stock Exchange | |
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The Specialist: Riding the Bulls and Bears | |
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The Specialst's Role: As Dealer, as Broker | |
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The Role of Automation and Telecommunication | |
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Other Duties of the Specialist | |
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Odd-Lot Trading | |
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Assigning Securities to the Specialist | |
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Conclusion | |
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The Secondary Market: Over-the-Counter Trading | |
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Following an Order Being Executed OTC | |
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The Over-the-Counter Bulletin Board: OTCBB | |
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Types of Orders | |
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Compliance Regulations of the NASD | |
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NASD Rules of Fair Practice | |
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The Nasdaq: Ongoing Changes | |
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NASD: National Association of Securities Dealers, Inc. | |
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Requirements for Securities to Become Listed on Nasdaq | |
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November 1998 Merger with the American Stock Exchange | |
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Nasdaq-100 Index Tracking Stock (AMEX Symbol QQQ) | |
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The Major Nasdaq Stock Market Indexes | |
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Expansion of Nasdaq Worldwide: Globalization of Stock Trading | |
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Monitoring the Markets | |
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Other Major Developments with the Nasdaq | |
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Conclusion | |
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Investment Companies: Closed-End and Open-End Funds--The "Package Plan" Approach | |
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Investment Companies | |
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Management Companies: Closed-End and Open-End Funds | |
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Pricing a Closed-End Fund | |
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Pricing an Open-End Fund | |
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Variety of Types of Open-End (Mutual) Funds for Bonds | |
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Conclusion | |
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Stock Options: Multipurpose Instruments | |
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The OCC and the Exchanges That Offer Option Trading | |
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Options: A Definition and Explanation of How Stock Option Contracts Generally Function | |
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Types of Option Contracts: Puts and Calls | |
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Option Premium: The Price of the Option Contract | |
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Options as a Hedging Tool | |
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Miscellaneous Option Topics | |
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Conclusion | |
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The Back Offices: Following the Long Paper Trail | |
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The Depository and Clearing House | |
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The Order Department | |
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PandS Department | |
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Margin Department | |
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Stock Record Department | |
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Accounting Department | |
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Dividend Department | |
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Proxy Department | |
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Stock Market Theories: Can Prices Really Be Predicted? | |
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The First American Analyst | |
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The Analysts | |
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The Technical Approach | |
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Analyzing Stocks: The Corporation's "Report Card" | |
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Current Assets and Current Liabilities | |
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Can the Corporation Pay Its Way? | |
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Using Debt and Capital Structure of a Corporation as Sources of Long-Term Funds | |
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The Income Statement | |
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Online Trading in the Stock Market: How Technology Has Changed the Financial Landscape | |
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Brokerage Firms in the World of Online Trading | |
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How an Investor Establishes Online Trading | |
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Wireless and Touch Tone Trading | |
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The Risks of Online Trading | |
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Protection for Online Investors | |
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Conclusion | |
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Globalization of the Stock Market: Expanding Opportunities for Investors | |
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Stock Markets Around the World | |
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Global Investing | |
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Effect of Extended / After-Hours Trading on Globalization | |
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Globalization: The Stock Exchanges | |
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Brokerage Firms and Online Access | |
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Conclusion | |
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Taxation: How Dividends and Capital Gains Are Taxed | |
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The Taxation of Interest | |
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The Taxation of Dividends | |
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The Taxation of Capital Gains | |
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Multiple Positions | |
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Stock Gifts to Minors | |
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Stocks Received as Gifts and Inheritances: Taxable Amounts and Basis | |
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In the Tank or, Even Worse, Crash, but Then a Reversal: How the Stock Market Works Under Pressure | |
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The Fair and Orderly Market | |
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Program Trading Myths | |
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The Global Crash | |
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The Stock Market and the Economy | |
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Conclusion | |
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Glossary | |
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Index | |
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About the Author | |