Stock system

Examples of Stock system in the following topics:

• Defining a Market System

  • A market system is a way to match buyers and sellers.
  • Publishing current prices is a key component with a market system.
  • There are many examples of market systems.
  • Perhaps the most famous is the stock market in which buyers and sellers trade stocks .
  • The NASDAQ is a stock market where buyers and sellers of stocks can meet and trade.

• Stocks

  • The capital stock (or stock) of a business entity represents the original capital paid into or invested in the business by its founders.
  • Such stock is often called non-par stock.
  • Stock typically takes the form of shares of either common stock or preferred stock.
  • In the United States, through the intermarket trading system, stocks listed on one exchange can often also be traded on other participating exchanges, including electronic communication networks (ECNs), such as Archipelago or Instinet.
  • Stock prices vary according to supply and demand for the stocks in question.

• Inventory Management

  • In the U.S. and Canada, inventory has become the equivalent of the British term stock; that is, it refers to material that is available from and stocked by a business.
  • In the context of accounting, inventory or stock is considered an asset.
  • Inventory management tracks the shape and percentage of stocked goods.
  • It requires systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status, and handle all functions related to the tracking and management of material.
  • Management of inventories, aimed primarily at determining and controlling stock levels within the physical distribution system, serves to balance the need for product availability against the need for minimizing stock holding and handling costs.

• The Stock Exchanges

  • There are thousands of stocks, but shares of the largest, best-known, and most actively traded corporations generally are listed on the New York Stock Exchange (NYSE).
  • By the late 1990s, the NYSE listed some 3,600 different stocks.
  • How are stocks traded?
  • Other large U.S. cities host smaller, regional stock exchanges.
  • The largest number of different stocks and bonds traded are traded on the National Association of Securities Dealers Automated Quotation system, or Nasdaq.

• NASDAQ

  • The NASDAQ Stock Market, also known simply as the NASDAQ, is an American stock exchange.
  • When the NASDAQ stock exchange began trading on February 8, 1971, it was the world's first electronic stock market.
  • At first, it was merely a computer bulletin board system and did not actually connect buyers and sellers.
  • A stock index or stock market index is a method of measuring the value of a section of the stock market.
  • It is calculated from weighting common stocks and similar securities listed on the NASDAQ stock market.

• Securities Exchange Act of 1934

  • It regulates stock exchanges, brokers, dealers, and even private traders.
  • Some of the well known exchanges include the New York Stock Exchange, the American Stock Exchange, and regional exchanges like the Cincinnati Stock Exchange, Philadelphia Stock Exchange and Pacific Stock Exchange.
  • This system is called NASDAQ, standing for the National Association of Securities Dealers Automated Quotation System.
  • In the last 30 years, brokers have created two additional systems for trading securities.
  • The alternative trading system, or ATS, is a quasi exchange where stocks are commonly purchased and sold through a smaller, private network of brokers, dealers, and other market participants.

• Forms of Financial Compensation

  • Different companies offer different types of stock options to their employees, allowing them to buy company stock at a discounted price.
  • Different companies offer different types of stock options to their employees, allowing them to buy company stock at a discounted price.
  • Today, the idea of a salary continues to evolve as part of a system of all the combined rewards that employers offer to employees.
  • Employee stock options are similar to warrants, which are call options issued by a company with respect to its own stock.
  • Explain each part of a total rewards system including salary, benefits, incentive pay, and an employee stock option (ESO)

• NYSE

  • The New York Stock Exchange is the world's largest stock exchange by market capitalization at $14.242 trillion as of December 2011.
  • The New York Stock Exchange, commonly referred to as the NYSE, is a stock exchange, or a secondary market.
  • The system enabled traders to receive and execute orders electronically via wireless transmission .
  • They also gain advertising and a boost in prestige, which likely increases their stock value.
  • To be listed on the New York Stock Exchange, a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years.

• Accounting for Sale of Stock

  • How the stock sale is accounted for depends on the type of stock sold.
  • How the stock sale is accounted for depends on the type of stock sold.
  • Most stock sales involve common stock or preferred stock.
  • Most stock sales involve common stock or preferred stock.
  • Summarize how to account for the sale of common stock, preferred stock and treasury stock

• Preferred Stock

  • Preferred stock usually carries no voting rights, but may carry a dividend, have priority over common stock upon liquidation and/or have other benefits.
  • In other words, in the case of liquidation or bankruptcy, preferred stock will have claim to assets before common stock, but after corporate bonds or other debt instruments.
  • Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation.
  • Some examples are prior preferred stock (highest priority), preference preferred stock, convertible preferred stock (exchangeable for common stock), cumulative preferred stock, exchangeable preferred stock, participating preferred stock, putable preferred stock, monthly income preferred stock, and non-cumulative preferred stock.
  • Preferred Stocks are considered a hybrid security with properties of both stocks and bonds, but are subordinate to bonds when it comes to rights of claim to company assets.