Placing Orders: Settlement Procedures The activities surrounding the transfer of ownership are called settlement procedures. &In the united states stock and bond transactions settle three business days after the trade date A number of market speculators engage in a practice known as a day trade, which involves buying and selling securities on the same day. Strong c6- market Mechanics 6-6
6 - 6 Strong C6 – Market Mechanics Placing Orders: Settlement Procedures ◆ The activities surrounding the transfer of ownership are called settlement procedures. ◆ In the United States, stock and bond transactions settle three business days after the trade date. ◆ A number of market speculators engage in a practice known as a day trade, which involves buying and selling securities on the same day
The Specialist and the book Specialists help maintain a fair and orderly market To tighten the spread in the market, specialists may actively participate in the market Strong c6- market Mechanics 6-7
6 - 7 Strong C6 – Market Mechanics The Specialist and the Book ◆ Specialists help maintain a fair and orderly market. ◆ To tighten the spread in the market, specialists may actively participate in the market
The Specialist and the Book Unless a customer indicates a contrary wish, limit and stop orders are automatically adjusted 4 Strong c6- market Mechanics
6 - 8 Strong C6 – Market Mechanics The Specialist and the Book ◆ Unless a customer indicates a contrary wish, limit and stop orders are automatically adjusted downward for the payment of a cash dividend
Types of Accounts In a cash account, an investor must come up with cash equal to the full value of the securities purchased. Cash Account Assets 工立ab立1i七ies Cash 23,089.76 500DE 45,000.00 300工NC24,000.00 100 RBD 3,000.00 500 OCR 17,437.50 Equity112,52726 112,527.26 $112,527.26 Strong c6- market Mechanics 6-9
6 - 9 Strong C6 – Market Mechanics Types of Accounts In a cash account, an investor must come up with cash equal to the full value of the securities purchased. Cash Account Assets Liabilities Cash $23,089.76 500 DE 45,000.00 300 INTC 24,000.00 100 RBD 3,000.00 500 OCR 17,437.50 Equity $112,527.26 $112,527.26 $112,527.26
Types of Accounts A margin account permits an investor to borrow part of the cost of investments from a brokerage firm Margin Account Assets 工立ab立1i七ies 500DE s45,000.00 Margin$33,792.10 300INTc24,000.00 100 RBD 3000.00 500 OCR 17,437.50 Equity$55,645.40 89,437.50 89,437.50 Strong c6- market Mechanics 6-10
6 - 10 Strong C6 – Market Mechanics Types of Accounts A margin account permits an investor to borrow part of the cost of investments from a brokerage firm. Margin Account Assets Liabilities 500 DE $45,000.00 Margin $33,792.10 300 INTC 24,000.00 100 RBD 3,000.00 500 OCR 17,437.50 Equity $55,645.40 $89,437.50 $89,437.50