ABSTRACT
Definition of Retail Bank ...............................................................................................................344 Definition of Commercial Bank .....................................................................................................344 Definition of Investment Bank ....................................................................................................... 345 Investment Banking and Securities Underwriting ......................................................................... 345
Introduction ............................................................................................................................... 345 Fundamentals of the Investment Banking Industry ................................................................... 345 The Securities Act of 1933 (Act of Full Disclosure).................................................................346 Tombstone Advertising and the Prospectus .............................................................................. 347 Syndication among Underwriters .............................................................................................. 349 Underwriter Compensation Hierarchy ...................................................................................... 350 New Issue Stabilization ............................................................................................................. 350 Municipal Underwriting ............................................................................................................ 352 Underwriting Government Issues.............................................................................................. 353 Underwriting State Issues (Blue Sky Registration)................................................................... 354 Exempt Securities ...................................................................................................................... 354 The Private Placement (Regulation D) Securities Exemption .................................................. 355 Shelf Registration ...................................................................................................................... 357
Securities Markets .......................................................................................................................... 357 Securities Act of 1934 ............................................................................................................... 357 The Stock Exchanges ................................................................................................................ 357 The Specialist ............................................................................................................................ 358 Specialist’s Book ....................................................................................................................... 358 Walking through a Trade ........................................................................................................... 359 Order and Position Types ..........................................................................................................360 Miscellaneous Orders and Positions ......................................................................................... 362
Long and Short Positions ..................................................................................................... 362 The Short Sale ...................................................................................................................... 363
Odd Lots ....................................................................................................................................364 OTC Markets .............................................................................................................................364 Market Maker ............................................................................................................................ 365 Electronic Sources of Securities Information ........................................................................... 365 Third Market ............................................................................................................................. 365 Fourth Market ............................................................................................................................366
