After you have read and studied this chapter, you should be able to:

1. Examine the functions of securities markets and investment bankers.
2. Compare the advantages and disadvantages of issuing bonds, and identify the classes and features of bonds.
3. Compare the advantages and disadvantages of issuing stock, and outline the differences between common and preferred stock.
4. Describe the various stock exchanges and how to invest in securities markets, and explain various investment objectives such as long-term growth, income, cash, and protection from inflation.
5. Analyze the opportunities bonds offer as investments.
6. Explain the opportunities stocks and mutual funds offer as investments and the advantages of diversifying investments.
7. Discuss specific high-risk investments, including junk bonds, buying stock on margin, and commodity trading.
8. Explain securities quotations listed in the financial section of a newspaper, and describe how stock market indicators like the Dow Jones Average affect the market.