New York Stock Exchange Indexes :
There are stock indexes that track the stocks traded on the NYSE. Since there are more then
3000 stocks traded on the NYSE, this index is a very broad measure of stock market conditions. It can be used to assess how
stocks in general have performed during a specific period.
Some investors may prefer to focus on a particular sector rather than on the entire stock market.
For this reason, the NYSE, Amex,(the American exchange), and Nasdaq,(National Association of Securities Dealers), offer
various indexes that cover subsets of stocks in a particular sector that trade on that exchange. For example, the NYSE offers
quotations for the industrial, transportation, utility, and financial stock indexes,(tinkerbell does not think they have one
for spaceships exactly , at least not yet). Each index is a measure of the performance of the firms of the type described
by that index whose stocks are traded on the NYSE. Differant sectors can experiance quite differant performance levels in
a particular period, so a assessment of the general market conditions cannot be automatically applied to every sector.This
study in sectors and their various use to descibe their operation can tell investors if their performance is weak, wheather
it is a problem with the whole sector, or the indivigual firm. The indexes serve as a useful benchmark because they can be
used to determine how the sector has performed.
If you decide to purchase indivigual stocks or stock indexes you must determine
* The type of order
* How to execute your order
*Wheather to buy on margin
*Wheather to take a short position
You can limit your risk and your expiences if you understand the differant types of orders, the differant
types of brokerage firms, and the risks associated with margin trading and short sales.
Brokers.... Traditionally, an investor who wants to buy or sell stock contacts his or her broker and
requests a specific transaction. The broker then communicates the information to a floor broker on the exchange where the
stock is traded. On exchanges where there is a trading floor,floor brokers execute the transactions transmitted to the exchange
,if they want to buy they communicate their requests to other floor brokers that want to sell the same stock. When they agree
on a price they contact the customers broker and the broker contacts the customer
to confirm the transaction,When the floor brokers agree on a price, the transaction is exectuted and recorded.