DOCSLIB.ORG

Study Course Workbook

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Study Course Workbook Study Course Workbook Created by Brian Kolins Version 1.2 Updated February 19 www.TheSecuritiesGuys.guru TSG: The Securities Industry Essential Exam (SIE) Table of Contents TABLE OF CONTENTS ......................... 2 3. PEOPLE ....................................... 48 Account Types and Characteristics .............................. 48 SOME IMPORTANT POINTS ............... 3 Customer Account Registrations ................................... 50 1. SECURITIES ................................... 4 Municipal Fund Securities ............................................. 56 Basics of Securities ........................................................... 4 Communications with the Public ................................... 58 Equity Securities................................................................ 6 Associated Persons ........................................................ 61 Debt Instruments ............................................................... 9 Roles of participants ...................................................... 66 Derivatives ...................................................................... 18 Disclosures...................................................................... 70 Pooled Investment Products ........................................... 23 Monetary and Fiscal Policy .......................................... 72 Annuities .......................................................................... 27 Business Economic Factors ............................................ 75 Misc. (REITs, DPPs, Hedge, ADR) .................................. 29 International Economic Factors .................................... 78 Investment Returns.......................................................... 79 2. LAWS ......................................... 31 Corporate Actions ......................................................... 81 The Securities Act of 1933 ............................................ 31 Strategies for Mitigation of Risk .................................... 86 The Securities Exchange Act of 1934 .......................... 35 Orders and Strategies ................................................... 89 Types of Markets ............................................................ 37 The Investment Company Act of 1940 ........................ 38 APPENDIX – ACRONYMS ................ 90 The Investment Adviser Act of 1940 ............................ 38 APPENDIX – DEFINITIONS ............... 94 Random Laws ................................................................. 39 Books, Records, and Privacy Requirements ................. 43 IMPORTANT EQUATIONS .............. 103 Prohibited Activities ........................................................ 46 LAST MINUTE STUDY SHEETS ......... 104 OTHER WAYS WE CAN HELP .......... 105 Any text in italic should be read, but will not be directly covered in the videos. There may be additional information on the site about them, and please feel free to contact Brian with questions, but these are topics that are “useful” to know, but don’t seem to be tested often. www.TheSecuritiesGuys.guru ©2019 pg. 2/105 TSG: The Securities Industry Essential Exam (SIE) Some important points 1. The material presented here is created by The Securities Guys. It is based on the FINRA outline, but the organization is not the same; Think about taking the FINRA outline, cutting it up, and then gluing all of it back together, but in a different order. The order is how The Securities Guys believe students will learn better. It is not Kaplan, or FINRA’s direct outline. 2. Be very careful of the word GUARANTEE. There are very very few things on securities exams that are GUARANTEED. Very rarely will an answer choice with GUARANTEE in it be the correct one. Be mindful of “big” words, as in words that are very powerful in questions. Words like ALL, EVERY, NONE, things are universal. There are not a lot of things that are universal in securities anymore than guaranteed. All you need is 1 thing to exist that is not that case, then the entire statement is wrong. Make sure if you select an ALL answer, you don’t actually mean to be selecting a MOST type answer. 3. Understanding the material in this class, or on flash cards, or in a book is only part of the solution. You need to know more than just the definitions and what they are, but how to use it. That is why you need access to a large question bank, and to take sample questions, study what you don’t know, review what you need to learn, and practice. Remember though, no question bank is going to show you questions from the test, but the concepts, material, the “WHY” they ask you, that will be tested. www.TheSecuritiesGuys.guru ©2019 pg. 3/105 TSG: The Securities Industry Essential Exam (SIE) 1. Securities Basics of Securities What is a Security Investment of Money In a pooled investment With third party management With an expectation of profit Broker/Dealers www.TheSecuritiesGuys.guru ©2019 pg. 4/105 TSG: The Securities Industry Essential Exam (SIE) Ownership Limited Liability is the idea that your liability is limited to your investment. You can only lose at most what you put in. www.TheSecuritiesGuys.guru ©2019 pg. 5/105 TSG: The Securities Industry Essential Exam (SIE) Equity Securities Types of equities Equity is ownership, and more risky than debt. Examples: Common Stock, Preferred Stock, REITS, Open/Closed End, ADRs, Rights, Warrants, etc Common stock Primarily capital appreciation Potential dividends Lowest liquidation claims in bankruptcy Preemptive Rights Round Lots (100) Voting rights Statutory Voting Can allocate 1 vote per share per seat, benefits large owners. Cumulative Voting Allocate all votes any way, including all for 1, benefits small owners. www.TheSecuritiesGuys.guru ©2019 pg. 6/105 TSG: The Securities Industry Essential Exam (SIE) Company incorporates and has a certain number of shares Authorized. They then choose to Issue some by going through Underwriting. Those not Issued are Unissued. The Issued shares then go through trading, and are Outstanding. Outstanding shares are simply shares in the general trading public. The Issuer can purchase their own shares from the general trading public, and shares help by the issuer are Treasury stock. There are many reasons company would purchase stock to become treasury stock. Employee stock options, stock benefits, stock increases, control of number of votes, control of dividends. American Depositary Receipts (ADRs) US trading of foreign companies in US dollars Issued by US banks to allow trading of foreign companies Purchased and paid in US dollars www.TheSecuritiesGuys.guru ©2019 pg. 7/105 TSG: The Securities Industry Essential Exam (SIE) Preferred stock Stated interest rate on certificate Higher liquidation claims in bankruptcy than common stock No voting No proportional ownership rights Purchased for Income Par Value $100 Attachments; Straight Preferred: Nothing other than stated rate if BOD declares a dividend. Convertible: Investor can convert the security into common shares. Lower stated return than straight. (Par)/(Conversion Factor)=(Number of Shares). Callable: Issuer can force the investor to sell the security to them. Higher stated return than straight. Cumulative: If dividends missed, all missed dividends must be paid to cumulative preferred owners before anyone else gets the new dividend. Lower stated return than straight. Participating: If BOD declares larger dividend, this preferred gets the larger dividend. Lower stated return than straight www.TheSecuritiesGuys.guru ©2019 pg. 8/105 TSG: The Securities Industry Essential Exam (SIE) Debt Instruments Generate income Purpose of all fixed-income securities (Bonds of all types, and Preferred Stock) is to generate income The more conservative the bond, the more likely the income, and the less that income will be. The more risky the bond, the greater the income will be, but the more risk there is to principal and interest payments in the future. Direct Government Debt is most conservative, then Agency, then Muni, then Corporate. General rule. Par value Face amount, the amount paid on maturity, for bonds is $1000. ($100 for preferred stock) Coupon The stated interest rate, or nominal yield printed on the Certificate. Interest paid every six months (semiannually). Annual income is the coupon times par, or coupon times $1000. Take percentage and move 1 decimal right, and that is dollars Ex. 7.9% = $79 Maturity The date when interest payments stop. Stated at issue of the bond. On the maturity date, last interest payment and $1000 is paid. Also known as Redemption. www.TheSecuritiesGuys.guru ©2019 pg. 9/105 TSG: The Securities Industry Essential Exam (SIE) Current Yield Current Yield is (Annual Income) ÷ (Cost to Purchase). The annual income is the coupon percentage times 1000. Current Yield is what you generally look for, and what people are looking for when they want to “maximize income”. Bond Quotations Given as percentage of Par. Be careful with decimals (colons), if it says .08, .16, or .24 (or :08, :16, :24) that is in 32nds. If .08 take percentage and add 2.50, if .16 add 5.00, and if .24 add 7.50. www.TheSecuritiesGuys.guru ©2019 pg. 10/105 TSG: The Securities Industry Essential Exam (SIE) Ratings and rating agencies The higher the rating, the more likely the issuer can pay interest and principal when due, but also generally the less they have to pay in interest. The lower the rating, the reverse; the less likely to pay interest and principal, potential problems, and the more they will have to pay
Load more

Recommended publications
  • Market Structure and Liquidity on the Tokyo Stock Exchange
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Industrial Organization and Regulation of the Securities Industry Volume Author/Editor: Andrew W. Lo, editor Volume Publisher: University of Chicago Press Volume ISBN: 0-226-48847-0 Volume URL: http://www.nber.org/books/lo__96-1 Conference Date: January 19-22, 1994 Publication Date: January 1996 Chapter Title: Market Structure and Liquidity on the Tokyo Stock Exchange Chapter Author: Bruce N. Lehmann, David M. Modest Chapter URL: http://www.nber.org/chapters/c8108 Chapter pages in book: (p. 275 - 316) 9 Market Structure and Liquidity on the Tokyo Stock Exchange Bruce N. Lehmann and David M. Modest Common sense and conventional economic reasoning suggest that liquid sec- ondary markets facilitate lower-cost capital formation than would otherwise occur. Broad common sense does not, however, provide a reliable guide to the specific market mechanisms-the nitty-gritty details of market microstruc- ture-that would produce the most desirable economic outcomes. The demand for and supply of liquidity devolves from the willingness, in- deed the demand, of public investors to trade. However, their demands are seldom coordinated except by particular trading mechanisms, causing transient fluctuations in the demand for liquidity services and resulting in the fragmenta- tion of order flow over time. In most organized secondary markets, designated market makers like dealers and specialists serve as intermediaries between buyers and sellers who provide liquidity over short time intervals as part of their provision of intermediation services. Liquidity may ultimately be pro- vided by the willingness of investors to trade with one another, but designated market makers typically bridge temporal gaps in investor demands in most markets.' Bruce N.
    [Show full text]
  • Series 6 Kaplan Financial Education
    The Exam Series 6 • 100 questions (plus 10 experimental) Kaplan Financial • 2¼ hours Education • 70% to pass ©2015 Kaplan University School of Professional and Continuing Education 1 ©2015 Kaplan University School of Professional and Continuing Education 2 Session One Securities Markets, Investment Securities and Corporate Securities, and Economic Capitalization Factors ©2015 Kaplan University School of Professional and Continuing Education 3 ©2015 Kaplan University School of Professional and Continuing Education 4 Securities and Corporate Securities and Corporate Capitalization Capitalization A. Issue stock B. Issue debt 1. Ownership (equity) 1. Bonds, notes 2. Limited liability 2. Holder of note or bond is creditor of corporation 3. Conservative for issuer a. Senior to equity securities in the event of liquidation Public 3. Conservative for investor Public ©2015 Kaplan University School of Professional and Continuing Education 5 ©2015 Kaplan University School of Professional and Continuing Education 6 1 Common Stock A. Characteristics 1. All corporations issue common stock Common Stock 2. Most junior security a. Has a residual claim to assets if company goes out of business or liquidates 3. Purchased for a. Growth b. Income c. Growth and income ©2015 Kaplan University School of Professional and Continuing Education 7 ©2015 Kaplan University School of Professional and Continuing Education 8 Common Stock (Dates) Common Stock (continued) B. Dates 3. Regulation T—FRB 1. Trade date a. Credit extended from broker/dealer to customer 2. Settlement date b. Two business days after settlement date a. Cash—trade date and settlement date on same c. Time extension day 1.) FINRA or Exchange b. Regular way—three business days d.
    [Show full text]
  • Equities: Characteristics and Markets I. Reading. A. BKM Chapter 3
    Lecture 3 Foundations of Finance Lecture 3: Equities: Characteristics and Markets I. Reading. A. BKM Chapter 3: Sections 3.2-3.5 and 3.8 are the most closely related to the material covered here. II. Terminology. A. Bid Price: 1. Price at which an intermediary is ready to purchase the security. 2. Price received by a seller. B. Asked Price: 1. Price at which an intermediary is ready to sell the security. 2. Price paid by a buyer. C. Spread: 1. Difference between bid and asked prices. 2. Bid price is lower than the asked price. 3. Spread is the intermediary’s profit. Investor Price Intermediary Buy Asked Sell Sell Bid Buy 1 Lecture 3 Foundations of Finance III. Secondary Stock Markets in the U.S.. A. Exchanges. 1. National: a. NYSE: largest. b. AMEX. 2. Regional: several. 3. Some stocks trade both on the NYSE and on regional exchanges. 4. Most exchanges have listing requirements that a stock has to satisfy. 5. Only members of an exchange can trade on the exchange. 6. Exchange members execute trades for investors and receive commission. B. Over-the-Counter Market. 1. National Association of Securities Dealers-National Market System (NASD-NMS) a. the major over-the-counter market. b. utilizes an automated quotations system (NASDAQ) which computer-links dealers (market makers). c. dealers: (1) maintain an inventory of selected stocks; and, (2) stand ready to buy a certain number of shares of stock at their stated bid prices and ready to sell at their stated asked prices. (a) pre-Jan 21, 1997, up to 1000 shares.
    [Show full text]
  • The Structure of the Securities Market–Past and Future, 41 Fordham L
    University of California, Hastings College of the Law UC Hastings Scholarship Repository Faculty Scholarship 1972 The trS ucture of the Securities Market–Past and Future William K.S. Wang UC Hastings College of the Law, [email protected] Thomas A. Russo Follow this and additional works at: http://repository.uchastings.edu/faculty_scholarship Part of the Securities Law Commons Recommended Citation William K.S. Wang and Thomas A. Russo, The Structure of the Securities Market–Past and Future, 41 Fordham L. Rev. 1 (1972). Available at: http://repository.uchastings.edu/faculty_scholarship/773 This Article is brought to you for free and open access by UC Hastings Scholarship Repository. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact [email protected]. Faculty Publications UC Hastings College of the Law Library Wang William Author: William K.S. Wang Source: Fordham Law Review Citation: 41 Fordham L. Rev. 1 (1972). Title: The Structure of the Securities Market — Past and Future Originally published in FORDHAM LAW REVIEW. This article is reprinted with permission from FORDHAM LAW REVIEW and Fordham University School of Law. THE STRUCTURE OF THE SECURITIES MARIET-PAST AND FUTURE THOMAS A. RUSSO AND WILLIAM K. S. WANG* I. INTRODUCTION ITHE securities industry today faces numerous changes that may dra- matically alter its methods of doing business. The traditional domi- nance of the New York Stock Exchange' has been challenged by new markets and new market systems, and to some extent by the determina- tion of Congress and the SEC to make the securities industry more effi- cient and more responsive to the needs of the general public.
    [Show full text]
  • Trading Around the Clock: Global Securities Markets and Information Technology
    Acronyms and Glossary Acronyms ACT —Automated Confirmation Transaction LIFFE —London International Financial Futures [System] (NASD) Exchange ADP —Automatic Data Processing, Inc. MATIF —Financial Futures Market (France) ADR —American Depository Receipt MOF —Ministry of Finance (Japan) AMEx —American Stock Exchange MONEP —Paris Options Market (France) BIS —Bank for International Settlement MOU —Memoranda of Understanding BOTCC —Board of Trade Clearing Corp. MSE —Midwest Stock Exchange CBOE -Chicago Board Options Exchange NASD —National Association of Securities Dealers CBOT —Chicago Board of Trade NASDAQ —NASD Automated Quotation system CCITT -Comite Consultatif International Nikkei 225 —Nikkei 225 futures contracts (Japan) Telegraphique et Telephon (International NSCC —National Stock Clearing Corp. Telecommunications Union) NYMEX —New York Mercantile Exchange —Commodity Exchange Act NYSE —New York Stock Exchange CEDEL —Centrale de Livraison de Valeurs OCC -Options Clearing Corp. (U.S.) Mobilieres OECD -Organization for Economic Cooperation CFTC —Commodity Futures Trading Commission and Development (U.S.) ONA -Open network architecture (of computer CME -Chicago Mercantile Exchange systems) CNs -Continuous Net Settlement OSE -Osaka Stock Exchange (Japan) DTC —Depository Trust Corp. OSF50 -Osaka Securities Exchange Stock Futures DVP -delivery-versus-payment (Japan) EC —European [Economic] Community OTC -Over-the-counter FIBv —Federation International des Bourses de PHLX —Philadelphia Stock Exchange Valeurs PSE —Pacific Stock Exchange —Federal
    [Show full text]
  • BUS-123 Spring 2014 Introduction to Stocks Name: Instr: F. Paiano Lecture Notes Assignments: Required: See
    BUS-123 Spring 2014 Introduction to Stocks Name: ________________ Instr: F. Paiano Lecture Notes Assignments: Required: See The Stock Markets Research Assignment (10 points) Required: See Earnings Calls Assignment (10 points) Due: Tue/Thu Mar 13 th , Online: Mar 15 th Lecture Note Terms: “equities” – “equity capital” – common stock (shareholders in common) – ownership in a public corporation dividends & capital gains Please concentrate on the lecture notes terms and concepts on this page. limited liability This information is also in chapters 5 and 2 but the book covers material in depth that I believe is either not that important for most investors historical performance (IPOs) or is better suited for later in the course (shorting & margining). “volatility” (a.k.a. risky!, “ I lost a lot o’ money! ”) primary market versus secondary market initial public offering (IPO) – “going public” – (a.k.a. It’s Probably Overpriced, Imaginary Profits Only) stock exchanges versus over-the-counter markets; brokers versus dealers (a.k.a. market makers) bull market versus bear market transactions: market order, limit order, stop (a.k.a. stop-loss), stop-limit margin accounts Please learn these major indices. selling short There are many, many others. transaction costs round lot versus odd lot – odd-lot differential stock quotes – finance.yahoo.com, www.bloomberg.com, www.marketwatch.com, etc. stock indexes: Dow Jones Industrial Average, Standards & Poor’s 500 Composite, NASDAQ Composite, Russell 2000, Dow Jones US Total Stock Market Index (nee Dow Jones Wilshire 5000 – a.k.a. total market ) Dow Jones US Completion Total Stock Market Index (nee Dow Jones Wilshire 4500 – a.k.a.
    [Show full text]
  • Money, Finance and Demography
    MONEY, FINANCE AND DEMOGRAPHY: THE CONSEQUENCES OF AGEING Papers presented at the 26th SUERF Colloquium in Lisbon Edited by Morten Balling, Ernest Gnan and Frank Lierman SUERF Colloquium Volume 2006 Money, Finance and Demography: The Consequences of Ageing A signifi cant ageing trend can be observed in Europe and in other parts of the world. Fertility is decreasing and life expectancy increasing. The impact of migration is growing. The book deals with the implications for fi nancial markets of these demographic trends. Leading economists and fi nancial experts from Europe and the United States evaluate the challenges to public pension systems and the private pension industry. Based on long-term projections of productivity and employment they look at potential growth in GDP per capita and implications for savings and wealth. Pension fund portfolio management is discussed together with the ability of capital markets to serve retirement-fi nancing purposes. Fiscal as well as fi nancial sustainability are analysed in depth. The roles of global imbalances and international capital movements are included. Most chapters also discuss policy implications - in particular with regard to how pension saving incentives and rules and incentives for retirement should be in order to ensure fi scal and fi nancial sustainability. All contributions in the book are based on presentations at the 26th SUERF Colloquium on Money, Finance and Demography – the Consequences of Ageing held on 12-14 October, 2006 in Lisbon sponsored by Banco de Portugal and Millennium bcp and in cooperation with the Universidade Nova de Lisboa. Morten Balling is Emeritus Professor of Finance at the Aarhus School of Business, Denmark.
    [Show full text]
  • NYSE Rules and the Antitrust Laws--Rule 394--Necessary Restrictions Or Illegal Refusal to Deal?
    St. John's Law Review Volume 45 Number 4 Volume 45, May 1971, Number 4 Article 12 NYSE Rules and the Antitrust Laws--Rule 394--Necessary Restrictions or Illegal Refusal to Deal? St. John's Law Review Follow this and additional works at: https://scholarship.law.stjohns.edu/lawreview This Note is brought to you for free and open access by the Journals at St. John's Law Scholarship Repository. It has been accepted for inclusion in St. John's Law Review by an authorized editor of St. John's Law Scholarship Repository. For more information, please contact [email protected]. NOTE NYSE RULES AND THE ANTITRUST LAWS- RULE 394 - NECESSARY RESTRICTION OR ILLEGAL REFUSAL TO DEAL? INTRODUCTION From the year 1820, when the real history of the New York Stock Exchange may be said to have commenced, it has gone on steadily increasing in its members, power, and influence until today it can be safely affirmed to be the most powerful organization of the kind in the world.' As evidenced by the above statement, the hegemonic posture of the New York Stock Exchange was already well established in the latter part of the nineteenth century. The last ninety years have by no means demonstrated any diminution in this position. In fact, its dominance in the securities markets has finally prompted recent in- quiries into the possible illegality of sundry measures utilized by the Exchange to perpetuate its supereminence in the industry. Nevertheless, nowhere in its history has the New York Stock Exchange (NYSE) confronted the issues it faces today.
    [Show full text]
  • UC Berkeley Berkeley Planning Journal
    UC Berkeley Berkeley Planning Journal Title South Africa: A Case for Total Divestment Permalink https://escholarship.org/uc/item/73c5t5zb Journal Berkeley Planning Journal, 2(1) ISSN 1047-5192 Author Harrington, John C. Publication Date 1985 DOI 10.5070/BP32113205 Peer reviewed eScholarship.org Powered by the California Digital Library University of California SOUTH AFRICA: A CASE FOR TOTAL DIVESTMENT John C. Harrington My belief is that it is in the best short-term as well as long-term economic interests of U.S. corporations to disengage from South Africa. South African corporations are no longer profitable in most cases and there is an immediate risk that product imports, capital investment or sales will be lost or adversely affected by continued military and police action, domestic or fo reign embar­ goes or government expropriation. This is in addition to normal risks of currency fluctuation and unstable commodity prices. In the long-term, a new majority-ruled government may look else­ where for investments and trade, or will extract a very high price for fo reign corporate involvement. At worst, corporate support of the white-minority will rule out any access in the future to South African strategic resources and play into the hands of Jj.S. cor­ porate enemies around the world. A short-term loss may also be more than offset by substantial long-term gains if U.S. corpora­ tions disengage. This paper argues for total U.S. corporate disengagement from South Africa and total divestment of U.S. capital to achieve disen­ gagement. The first part of the paper presents background infor­ mation on the South African political economy.
    [Show full text]
  • Minutes of the Fourth Market Risk Advisory Committee Meeting, April 26, 2016
    MINUTES OF THE FOURTH MEETING OF THE U.S. COMMODITY FUTURES TRADING COMMISSION'S MARKET RISK ADVISORY COMMITTEE APRIL 26, 2016 The U.S. Commodity Futures Trading Commission's ("CFTC" or "Commission") Market Risk Advisory Committee ("MRAC" or "Committee") convened for a public meeting on Tuesday, April 26, 2016, at 10:04 a.m., at the CFTC's Washington, DC, headquarters, located at Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581. The meeting consisted of two panel sessions. Panel I discussed "How well are our derivatives markets functioning for market participants, particularly end-users?" Panel II discussed "How is the market using portfolio compression today?" MRAC Members and Invited Panelists/Guests in Attendance Anat Admati, George G.C. Parker Professor of Finance and Economics, Graduate School of Business, Stanford University, Representing Better Markets Stephen Berger, Director, Government and Regulatory Policy, Citadel Investment Group ("Citadel) Lucio Biase, CEO and Founder and LMRKTS Tom Coyle, Vice President and General Manager, Chicago & Illinois River Marketing, LLC Nathan Jenner, Head of Market Transparency, Bloomberg LP Jerry Jeske, Group Chief Compliance Officer, Mecuria Energy Trading, Representing Commodity Markets Council Sebastiaan Koeling, Chief Executive Officer, Optiver US, Representing Futures Industry Association's Principal Traders Group Claire Lobo, Global Head of Business Development, Markit Trade Processing Glenn Mackey, Chief Risk Officer, NRG Energy ("NRG") Dennis McLaughlin, Group Chief
    [Show full text]
  • Chapter 5 the Stock Market End of Chapter Questions and Problems
    CHAPTER 5 The Stock Market On May 17, 1792, a group of commodity brokers met and signed the now famous Buttonwood Tree Agreement, thereby establishing the forerunner of what soon became the New York Stock Exchange. Today, the NYSE is the world’s largest and best known stock exchange. In 1998, the NYSE transacted more than $7 trillion in stock trades representing over 150 billion shares. Established in 1971, and less well known, Nasdaq executes trades for a similar number of stock shares. Together, the NYSE and Nasdaq account for the majority of stock trading in the United States. With this chapter, we begin in earnest our study of stock markets. This chapter presents a “big picture” overview of who owns stocks, how a stock exchange works, and how to read and understand stock market information reported in the financial press. A good place to start out is by looking at stock ownership. 5.1 Who Owns Stocks? If you invest in common stock, you will find yourself in generally good company. More than one in every three adult Americans owns stock shares directly, or owns them indirectly through a defined contribution pension fund or stock mutual fund. Interestingly, only about 38 percent of all stockholders in 1992 had brokerage accounts, attesting to the importance of mutual funds and defined contribution pension funds. Stock ownership has become increasingly democratic in recent decades. For example, in 1962 the wealthiest 2.5 percent of American households owned 75 percent of all 2 Chapter 5 publicly traded stock. In contrast, by 1992 the wealthiest 18 percent of households owned less than 50 percent of all publicly traded stock.1 While the number of individual investors owning stock has increased in recent decades, the proportion of all outstanding stock shares held directly by all individuals has actually declined.
    [Show full text]
  • Learning from the Market Integrating the Stock Market Game Across the Curriculum
    LEARNING FROM THE MARKET INTEGRATING THE STOCK MARKET GAME ACROSS THE CURRICULUM Funding Provided By Securities Industry Foundation for Economic Education Members of the National Design Team Project Director R. J. Charkins Mark C. Schug California State University, San Bernardino University of Wisconsin–Milwaukee San Bernardino, California Milwaukee, Wisconsin Donald G. Fell Writers Florida Council on Economic Education Mark C. Schug Tampa, Florida University of Wisconsin–Milwaukee Gail Funk Milwaukee, Wisconsin University of Delaware Kathleen Ryan Johnston Center for Economic Education Milwaukee Public Schools Newark, Delaware Milwaukee, Wisconsin Harold Gilbert John S. Morton Westside High School Collegiate School Anderson, South Carolina Richmond, Virginia Melinda Patterson Grenier Donald R. Wentworth Wall Street Journal Classroom Edition Pacific Lutheran University New York, New York Department of Economics DeAnn Huinker Tacoma, Washington University of Wisconsin–Milwaukee Milwaukee, Wisconsin Senior Editor Richard D. Western Trina H. Krieger University of Wisconsin–Milwaukee Georgia State University Milwaukee, Wisconsin Center for Economic Education Atlanta, Georgia Field Test Teachers Anthony Lamport Steven Carlovsky Securities Industry Association Salem Lutheran School Trustee Milwaukee, Wisconsin Foundation for Economic Education New York, New York Jennifer J. Fontanini Wauwatosa School District Katherine Phillip Wauwatosa, Wisconsin Securities & Exchange Commission Washington, DC Jill Koebernik Milwaukee Public Schools Gloria Talamas Milwaukee, Wisconsin Securities Industry Foundation for Economic Education Stephanie D. Todd New York, New York Milwaukee Public Schools Milwaukee, Wisconsin Copyright © 1997, National Council on Economic Education, 1140 Avenue of the Americas, New York, NY 10036. All rights reserved. The activities and worksheets may be duplicated for classroom use, the number not to exceed the number of students in each class.
    [Show full text]