June 13, 2008

Currency trading guide – These: (1) company prestige; (2) daily or frequent trading in its stock with publicly reported prices; (3) superior loan or collateral value of its securities; (4) because its stock becomes well known to investors, new public financing is done more easily and at lower cost; (5) listing makes its shares more acceptable to large individual and institutional investors; and (6) broad active markets attract new stockholders.

As mentioned, listed markets are auction ones. Buyers and sellers meet, through brokers, on the floor of an exchange where, during the official trading hours, shares are sold to the highest bidder. All transactions are immediately reported and recorded, and the total number of shares traded and the price ranges of every issue, every day, are made public. On the New York Stock Exchange, the standard trading unit on most issues is 100 shares; and in bonds, $1,000. The Over-the-Counter Market All securities not listed on any exchange trade over-the-counter. This over-the-counter market is actually by far the largest in the world.

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