19. Brokerage, ECNs, etc.

Financial Markets (ECON 252)

The exchanges in which stocks and other securities are traded serve an important function in finance. They bring together people interested in buying and selling securities in order to create a universal price. Brokers and dealers are also an important part of the system, their methods and standards are ultimately behind the success of the exchanges. Many information innovations have advanced the functioning of exchanges, going all the way back to the ticker machine, which was created to communicate the price of securities at a point in time to all interested parties. Electronic Communication Networks and automatic exchanges, more generally, have significantly impacted the exchange of securities and few exchanges still have physical trading floors.

00:00 - Chapter 1. Introduction: The Broker and the Dealer
15:11 - Chapter 2. Exchanges in the United States
24:02 - Chapter 3. From Ticker Tapes to ECNs: The Impact of Technology
42:12 - Chapter 4. Action on the "Floor" of the Stock Exchange
01:01:46 - Chapter 5. The Dealer's Life and the Gambler's Ruin Problem

Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses

This course was recorded in Spring 2008.

Category:

Education

Tags:

• asked
• prices
• bid
• brokers
• dealers
• ECN
• FINRA
• market
• microstructure
• theory
• orders
• NYSE
• round
• lots
• SEC
• short
• sales
• stock
• exchange