Series 62


Trading Securities - Introduction

The section covering the secondary market on the series 62 exam is the area where most students face their biggest challenges. You can expect to see a significant number of questions relating to the operation of the NASDAQ Market Center and how orders are handled, routed and executed.



Investors, who do not purchase their stocks and bonds directly from the issuer, must purchase them from another investor. Investor-to-investor transactions are known as secondary market transactions. In a secondary market transaction, the selling security owner receives the proceeds from the sale. Secondary market transactions may take place on a traditional exchange or in the over the counter market known as NASDAQ. While both facilitate the trading of securities, they operate in a very different manner. We will begin by looking at the types of orders that an investor may enter and the reasons for entering the various types of orders.



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Types Of Orders

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