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Chapter 12 Buying and Selling Investments. What Are Sources of Investing Information?. Magazines Newspapers Investor newsletters Annual reports Prospectus Internet. 12-1 Researching Investments and Markets. What Professional Advice Is Available?.
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Chapter 12 Buying and Selling Investments
What Are Sources of Investing Information? • Magazines • Newspapers • Investor newsletters • Annual reports • Prospectus • Internet 12-1 Researching Investments and Markets Slide 2
What Professional Advice Is Available? • A stockbroker buys and sells securities on behalf of others. • Full-service brokers • Discount brokers • Online brokers • A financial planner helps people make investment decisions to meet goals. • Banks and credit unions sell securities that they endorse. 12-1 Researching Investments and Markets Slide 3
How Are Financial Markets Designed? • Securities can be traded in the primary or secondary markets. • The primary market is where new issues of securities are sold. • The secondary market is where previously issued securities are sold. 12-1 Researching Investments and Markets Slide 4
How Are Financial Markets Designed? • Securities exchanges are places for brokers to buy and sell securities for their clients. • Over-the-counter market is a network of dealers and brokers who buy and sell securities not listed on an exchange. • Direct investing involves buying securities directly from a corporation. • Reinvesting involves getting stock dividends instead of cash dividends. 12-1 Researching Investments and Markets Slide 5
Focus On . . . Full Service or Discount Brokers? • Discount brokers: • Charge a smaller fee • May charge extra for information • Full service brokers: • Give sound investment advice for a higher fee • When making a choice, consider: services, fees, location of nearest brokerage office, minimum deposits, etc. 12-1 Researching Investments and Markets Slide 6