Chapter 14

Going to Market: Orders and Trades


Bullet Understanding the differences between the primary and secondary markets

Bullet Comparing stock exchanges to the over-the-counter market

Bullet Looking at order qualifiers

Bullet Meeting a designated market maker and looking over the books

Part of your function as a registered rep will be to understand and explain to customers (and potential customers) how the stock market works. I designed this chapter with that in mind (along with the fact that you need to know this stuff for the Series 7, of course).

In this chapter, I cover the basics of exchanges and the over-the-counter market, along with some of the active participants who help the market run smoothly (at least most of the time). Pay particular attention to the “Talking about order types” and “Factoring in order features” sections, because you’ll definitely use that information every day after you pass the Series 7 exam. As in the other chapters, you will notice some overlap between the material on the Securities Industry Essentials exam and the Series 7 exam.

Shopping at Primary and Secondary ...

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