Saturday 19 April 2014

Financial Industry Categories

1. Market

  • New York Stock Exchange
    • an auction market and uses specialists to trade securities.
    • specialists: keeping the market in equilibrium, they are required to execute all customer orders ahead of their own
    • SuperDOT system is an electronic system used to place orders for stocks on the NYSE.  

    • NASDAQ (National Association of Security Dealers Automatic Quote System)
      • an OTC market where trading is facilitated through market makers.
      • Market makers:  ensure there is a buyer for every sell order and a seller for every buy order at any time. The major risk is the time lapse between the two transactions; the faster he or she can make the spread the more money the market maker has the potential to make. 
      • ECNs network major brokerages and traders, so that they can trade between themselves without involving a middleman.
      • SOES is an automatic order execution for individual traders with orders less than or equal to 1,000 shares.
      • There are three levels on the Nasdaq that vary on the amount of information and access they provide to investors. (Not Fair)
    • American Stock Exchange (AMEX)
    • Chicago Board of Trade (CBOT) 
    • Commodity Exchange of New York

    2. Regulation and control

    • Federal Reserve
    • Securities and Exchange Commission (SEC) 
    • Federal Deposit Insurance Corporation
    • Commodity Futures Trading Commission
    • Department of the Treasury


    3. Market Player and Roles

    • Companies & Investors
    • Hedge Fund Sector
      • investment advisers, investment managers, fund administrators, buy-side analysts, fund custodians, legal advisers, auditors, registrars, research analysts, transfer agents
    • Mutual Fund Sector
      • investment advisers, investment managers, fund administrators, buy-side analysts, fund custodians, legal advisers, auditors, registrars, research analysts, transfer agents
    • Private-Equity Sector
      • financial analysts and associates, portfolio managers, research analysts, accountants, and lawyers
    • Venture Capital Sector
      • general partners, junior partners, financial analysts, financial associates, research analysts, and accountants. Many funds have only partners and support staff

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