Stock Market Project

Essay by briansgirl0413University, Bachelor's February 2005

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The Stock Market operates in large cities such as, New York City, Boston, Philadelphia, Chicago, Denver, Los Angeles, and San Francisco. The Stock Market also operates in the major commercial centers of the world. The most important stocks are the New York Stock Exchange (NYSE), and the American Stock Exchange (ASE). The Midwest Stock Exchange in Chicago and the Pacific Coast Stock Exchange in San Francisco and Los Angeles is open Monday through Friday. The New York Stock Exchange is required in connection with the original application for listing stocks on the New York Stock Exchange: the title of the company, status of the security under the Federal Securities Act, history and business, description of properties, affiliated companies, management, labor relations, dividend record capitalization warrants conversation rights or other commandments funded debt pending litigation of a material nature, accounting policies and financial statements. New York Stock Exchange transactions may be made in three different ways: cash, regular, or on a limited option to seller as to the time of delivery or acceptance.

Cash transactions mean that a stock is bought, delivered, and paid for the same day; Regular transaction is the stock is bought and must be paid for and delivered by noon on the fifth day following a full business day. Ninety five percent of all transactions are regular.

Stocks provide the means for a corporation to raise money. A stock in a business is a certificate that represents shares of ownership in a corporation. Certificates entitle them to shares in the profits of the company, which are paid out at intervals, in the form of dividends. Stocks are generally negotiable. Stockholders have the right to assign or transfer their shares to another individual. There are two main categories of stocks: common and preferred. Earning or...