Presented by the Arkansas Securities

Department

AN INTRODUCTIONTo Securities

&The Stock Market

Registration of Investment Professionals

Registration of Securities

Investigation of Complaints and

Enforcement of Laws

Educate and Inform Investing Public

Securities Firms

Buyers

Sellers

InvestmentsReturn - Risk - Maturity

1. Municipal bonds - interest2. Government bonds- interest3. Corporate bonds - interest4. Common stock - dividends, voting5. Preferred stock – dividends, no vote6. Mutual funds - diversity

Risk and Return

US Government Securities

Options

Stocks

Investment Grade Bonds

GENERAL INFORMATION

Days of week- business days, closed on holidays

Hours – eastern time Different Geographic

Markets Emergency Closures

The Exchang

S & P 500

Dow Jones Industrial

What is the difference between an exchange & an index

Stock exchange – market place for listed stocks, those approved for trading can be bought (bid) and sold (ask)

NASDAQ, NYSE, AMER

Index – comprises only a small representation of stocks from different sector or industries DOW Standard & Poors

GOAL OF INVESTING

BUY ------------ LOW

SELL --------------------HIGH

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Where is the Market

GOING??????

Influences on the Market

• War• Emotion• Politics• Economy• Natural Disasters

What influences the price of a stock

• Conditions in the Industry ( example-airlines)• Changes in Technology (cell phones vs. land lines)• Specific Stock Situation (google)

Competition from China and India is

changing the way businesses operate everywhere.

.Picking StocksTelevision

Magazines

Newspapers

Internet Websites

Annual Reports

Prospectus

52 Week Yield Price/ Vol Net Hi Lo Company Symbol Dividend % earn 100 Close Chg. 57 37 Murphy Oil MUR .45 .8 13 10430 55.74 1.75

January 4, 2006

Growth

Birth Maturity

Decline

THE ARKANSAS 20 JANUARY 4, 2006

Acxiom Corp. 23.49 + 0.49 AERT 1.71 - 0.08 Alltel Corp 63.31 + 0.21 Americas Car-Mart Inc. 17.25 + 0.73 Arkansas Best Corp 44.58 + 0.90 Baldor Electric 26.03 + 0.38 Bank of the Ozarks 37.53 + 0.63 Beverly Enterprises 11.79 + 0.12 Champion Parts Inc. 0.75 Unchg Deltic Timber Corp 51.95 + 0.09 Dillard’s Inc. 25.38 + 0.56 First Fed Bancshares 24.30 Unchg JB Hunt Transport 22.73 + 0.09 Murphy Oil 55.74 + 1.75 PAM Transportation 18.10 + 0.31 Pocahontas Bancorp 13.30 + 0.35 Simmons First Ntl 28.79 + 1.09 Tyson Foods 16.71 - 0.39 USA Truck 28.90 - 0.23 Wal-Mart Stores 46.23 - 0.57