Common Stock Markets in the United States
Abnormal returns, 347-
That portion of a security’s returns that is above (positive) or
below (negative) what one would expect from market movements and the risk class of the
Alternative Trading Systems (ATS), 330-
Mechanism whereby the direct trading of
stocks between customers can occur without the use of a broker or other intermediaries.
The ATS market is also called the Fourth Market.
There are two types: electronic
communication networks (ECNs) and crossing networks.
Anomalies in the market, 347-
Examples of inefficient pricing in the market.
Big Board, 322-
Common term for the New York Stock Exchange (NYSE).
Block Trades, 341-
Trades of 10,000 shares or more of a given stock, or trades of shares
with a market value of $200,000 or more (according to NYSE).
Call money rate, 337-
Also known as the broker loan rate, this is the interest rate banks
charge brokers for the funding of loans to investors who buy on margin.
Capitalization (or market capitalization), 345-
The total market value of a firm’s
common stock, which equals the number of outstanding shares times the price per share
of the stock on the market.
Chartist, 347- also a Technical analyst-
this investor follows a strategy of selecting
stocks solely on the basis of price patterns or trading volume.
Consolidated Quotation System (CQS), 330-
An electronic display system providing
data on trades of listed stocks in different market centers.
Used in the third market.
Cross trading system, 330-
Trading systems that allow institutional investors to match
buyers and sellers directly, typically via computer.
Part of the fourth market.
Discount brokers, 327-
Brokers that charge commissions at rates much less than those
charged by other brokers, but offer little or no advice or any other service apart from
execution of the transaction.
Electronic communications networks (ECNs), 322-
a type of ATS.
broker-dealers that operate as market participants within the NASDAQ system.
the fourth market.
Physical location where market participants who are members of the
exchange (i.e. own a “seat”) assemble to trade stocks or other securities, which are listed
for trading on the exchange.
Fill or kill order, 335-
An order to buy or sell shares that must be executed immediately
or be canceled.
First market, 323,
Refers to trading on exchanges of stocks listed on an exchange.
Forms of pricing efficiency, 347-
Known as the weak form, the semistrong form, and
the strong form, these relate to the various types of information believed to be impounded
or embedded in the prices of publicly traded securities.
The book says that data says
market is weak form.
Fourth market, 323-