FI 491 Lecture Notes - Lecture 46: Estate Planning, S&P 500 Index, Market Trend
Document Summary
Earn commissions by executing buy and sell orders for outside customers. Brokers do not own the securities; they earn commissions from the individuals and organizations for whom they place orders. Procedure that holds investors" shares in book-entry form, rather than issuing a physical paper certificate of ownership. Provide useful summaries of overall price trends, both in specific industries and in the stock market as a whole. Periods of rising stock prices, generally lasting 12 months or longer; investors are motivated to buy, confident that they will realize capital gains. Periods of falling stock prices, usually 20% off peak prices; investors are motivated to sell, anticipating further falling prices. The oldest and most widely cited us market index: the dow is an average of the stock prices for these 30 large firms, and traders and investors use it as a traditional barometer of the market"s overall movement.
