Common Stock Market1. Astock marketonwhichonlycommon sharesaretraded.

2.Thesupplyanddemandforcommonshares,whetherofasinglecompany,sector,ora wholeeconomy.stop order order lies dormant turns into market order when certain price (the stop) is reached buy if price rises to $60 sell if price falls to $58 stop loss order investor does not have to watch market but in a volatile market stop could be triggered prematurely end up trading unnecessarily

stop limit orderturns into limit order when stop is reached,buy if price rises to $60, but only is executed at $65 or lessmarket if touched orderturns into market order if certain price is reached,buy if price falls to $55,sell if price rises to $62how long is an order good?fill or kill orderexecuted when reaches trading floor, or canceled,good until canceled/open order,is good indefinitelyorder sizeround lots,lots of 100 shares,odd lots,less than 100 shares,more difficult to trade,block trades,10,000 shares or $200,000 valueBuying on the marginbuyer borrows part of purchase price of stock, using stock as collateral,borrow at call money rate,Fed sets initial margin requirement,minimum cash payment,50% since 1975if stock price fallscollateral worth less,if collateral worth only 125% of loan (maintenance margin),margin call,owner must put up more cash or sell stock,margin calls can worsen stock crashStop OrderA stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price. Investors generally use a buy stop order to limit a loss or to protect a profit on a stock that they have sold short. A sell stop order is entered at a stop price below the current market price. Investors generally use a sell stop order to limit a loss or to protect a profit on a stock that they own.BUY STOP -People using a buy stop hope to gain if momentum gains on a particular stock. If the price exceeds the price you have set, it will automatically trigger a market order.A Sell Stop Order is an order to sell a stock at a price below the current market price. Once a stock's price trades at or below the price you have specified, it becomes aMarket Orderto sell. A Sell Stop Order is also commonly referred to as a Sell Stop/Loss Order. The main benefit of a Sell Stop Order is that you will sell off your stock IF the price is showing downward momentum, protecting you from steeper losses.Sell Stop Orders are great for protecting gains and preventing large losses.Astop-limit ordercombines the features of astop orderand alimit order.Once astockreaches the stop price, a limit order is automatically triggered to buy/sell at a specific target price.How it works/Example:Let's say you boughtstockABC at $50 per share. You don't want to lose more than $5 per share, so you set a stop-limit order for $45.If the stock dips to $45, the stop price triggers alimit orderto sell at $45. If a rapid price decline takes the stock lower than $45, the limit orderwillensure that you don't sell at the lower price. The limit order will only execute when the stock reaches $45 again.This is an important difference between stop-loss orders and stop-limit orders. When using a traditionalstop-loss order, if ABC falls to $45 and triggers the stop price, at that point the order becomes amarket order. If the price continues to fall and is at $42 by the time your market order is executed, then you will only receive $42 per share. A stop-limit order enables you to maintain some control over the price at which you buy or sell. Butnotethat with all limit orders, if the limit price is never reached, the orderwillnever be executed. In the above example, if the stock falls to $42 and never bounces back to $45, yourlimit orderwon't trigger and you'll still own thesharesyou were trying to sell at $45.DEFINITION of 'Market If Touched - MIT' A conditional order that becomes a market order when a security reaches a specified price. When using a buy market-if-touched order, a broker will wait until the security falls to a certain level before purchasing the asset. A sell market-if-touched order will activate when the price of a security rises to the specified level.Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally. To trade on margin, you need amargin account. This is different from a regularcash account, in which you trade using the money in the account. By law, your broker is required to obtain your signature to open a margin account. The margin account may be part of your standard account opening agreement or may be a completely separate agreement. An initial investment of at least $2,000 is required for a margin account, though some brokerages require more. This deposit is known as theminimum margin. Once the account is opened and operational, you can borrow up to 50% of the purchase price of a stock. This portion of the purchase price that you deposit is known as theinitial margin. It's essential to know that you don't have to margin all the way up to 50%. You can borrow less, say 10% or 25%. Be aware that some brokerages require you to deposit more than 50% of the purchase price.atransaction costis acostincurred in making an economic exchange (restated: the cost of participating in a market).The termsoft dollarsrefers to the payments made bymutual funds(and other money managers) to their service providers. The difference between soft dollars and hard dollars is that instead of paying the service providers with cash (i.e. hard dollars), the mutual fund will pay in-kind (i.e. with soft dollars) by passing on business to the brokerage.IMPACT COST-Part of theexpenseoftradingasecurity, whichincludestheconcessionanunderwritingsyndicatewill receive for bringing the security tomarket. Thesecostsoftenaffectthe marketliquidityof a securityissue. Typically used by largefinancial institutiontodeterminetheviabilityof an securitypurchase. TIMINGCOST-Expensesassociated with asecuritytransactionthat are notdirectlyrelated to the transaction. For example, if atradeis conducted atmarket priceand thestock pricemovesbefore the trade is executed, the timingcostwould be the difference between the quotedpriceat the time the order was given and the actualexecuted price. OPPORTUNITY COST Abenefit,profit, orvalueof something that must be given up toacquireorachievesomething else. Since everyresource(land,money, time, etc.) can be put to alternativeuses, everyaction,choice, ordecisionhas anassociatedopportunity cost. Opportunitycostsarefundamentalcosts ineconomics, and are used incomputingcost benefit analysisof aproject. Such costs, however, are not recorded in theaccount booksbut are recognized indecision makingby computing thecashoutlaysand their resulting profit or loss.