2. The Stockbroker
 Goes through training and testing to become
a registered representative of the NASD
 Can provide advice
 Follows various industries and companies to
compile investment information

3. Let the Buyer Beware
 A full-service stockbroker is a
salesperson first and an advisor
second
 The broker ultimately has to sell the
product to you

4. Placing an Order
 Verbally over the
telephone
 Through touch-tone
automated system
 Over the Internet

5. First Basic Kind of Order
Market Order
You want to buy or sell a
certain number of shares
of stock at the best current
available price and you
assume your order will be
executed as soon as
possible.

6. Second Basic Kind of Order
Limit Order
You want to buy or sell
when the stock reaches
a certain price. You will
not buy or sell if the
specified price is not
reached

7. Third Basic Kind of Order
Stop Order
Your order to buy or sell at a specific price
changes to a market order when the specific
price is reached

8. Types of Accounts
 Cash accounts
 Required to pay for your stocks
purchases within 3 business days of your
order
 Especially useful for beginning
investors
 Margin accounts
 You are actually borrowing money to
purchase stocks
 Should be an experienced investor

9. Selling Short
 Margin accounts are sometimes
known as selling short
 Investor is selling borrowed stock
 Will pay for it later
 Betting price will drop between
the time of sale and the time of
purchase, so he can pocket the
difference
 If the price rises, he loses money