7'3'2 Features of Preferred Stock

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7.3.2 Features of Preferred Stock (???)

• Dividends
• Stated dividend that must be paid before
  dividends can be paid to common stockholders
• Dividends are not a liability of the firm and
  preferred dividends can be deferred indefinitely
• Most preferred dividends are cumulative any
  missed preferred dividends have to be paid before
  common dividends can be paid
• Preferred stock generally does not carry voting
  rights

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7.4 Stock Market

• Dealers vs. Brokers

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7.3.1 New York Stock Exchange (NYSE) ???

• Members, the owners of seats in NYSE
• Commission brokers
• Specialists, or market makers
• Floor brokers (????,used by commission brokers,
  becoming less important)
• Floor traders (?????,trading for their own
  accounts)
• Operations
• The business of NYSE is to attract and process
  orders flows.
• Floor activity
• Super DOT System (Designated Order Turnaround)

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7.3.2 NASDAQ ????

• NASDAQ, a acronym (???) stands for National
  Association of Securities of Dealers Automated
  Quotations system.
• Main difference with NYSE,
• -Not a physical exchange computer based
  quotation system
• -multiple market maker system rather than one
  specialist system
• Large portion of technology stocks.
• Nasdaq Global Market and Nasdaq Capital market
  Market

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7.3.3 OTCBB

• Nasdaq has no business relationship with the
  issuers quoted in the OTC Bulletin Board. These
  companies do not have any filing or reporting
  requirements with The Nasdaq Stock Market, Inc.,
  or the NASD. However, issuers of all securities
  quoted on the OTCBB are subject to periodic
  filing requirements with the SEC or other
  regulatory authority.
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  ???????????????????,??????????????????????????????
  ????????????

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Work the Web Example

• Electronic Communications Networks provide
  trading in NASDAQ securities
• The Island allows the public to view the order
  book in real time
• Click on the web surfer and visit The Island!