Singapore Entrepreneurs Network & Startup Organization

Spotted some errors...



The description is for a Long Call Option. There are also Put Options. Also, the specific price is called the Strike Price and not the exercise price.

Minor point: Main use of Options is to hedge since Options have the same delta exposure as holding a position in the underlying. Speculators do use Options as described above but the main attraction is not "very low price" rather, it is the leverage.





With so many brokers offering different kind of accounts (full service, deep discount, currency only, options etc), they are normally just lumped together. For example, the 16th largest brokerage in the USA is Interactive Brokers which offers both Full Service and Discount services for almost all the products (futures, options, shares, forex etc).

However, some still refer IB as a Discount Brokerage even when they offer Full Service Accounts.

Brokerage Accounts however, are divided into two kinds:
1) Full Service
2) Discount (or Deep Discount)

It is the industry standard in the USA for both to provide trading via online and offline. (in other words, 99% of brokerages provide both an online platform as well as a land line for placing trades thru the phone)

Full Service Accounts come with investment advice but has much higher commission costs while Discount Accounts come with no advice but much lower commission costs because clients only foot the bill for execution costs.

Trading access are further categorized into:
1) Direct Access
2) Online

Online Trading access refer to using the internet to place trades as one would through the telephone. Either a standalone platform is provided or the brokerage has an internet webpage.

Direct Access refer to brokerages which runs direct line to the exchanges, allowing clients to place trades directly onto the exchange itself without broker intervention. Direct Access usually comes with Level 2 quotescreen displaying real time order book, inside market and bid-ask volume.

In short:
Brokerage => Full Service/Discount Accounts => Online/Direct Access

Who wrote the glossary?



Its "Make Market" rather than "Make a Market".

The institution that make market in an instrument is called a "Market Maker" in all Exchanges. Only the New York Stock Exchange (NYSE) in the USA uses Specialists, which are classified as a type of Market Maker.

Generally, Specialists are employed when the Exchange functions with a human occupied Trading Floor. On electronic exchanges, they are only called market maker. (thus human market makers on the trading floor are called Specialists)

In the OTC market, the firm that makes market are called Market Maker as well as Dealer.

so u acknowledged the error but u're not gonna correct them for project senso?

thus an error ridden article is still on display on your website with no action done? you singaporeans have a perculiar sense of financial literacy.  

So do you or do you not acknowledge that there are errors?   If you think its 100% correct because its writtened by financial experts, just say so. No problem there. What may your official response be? Errors or no errors?

Actually, no need to prove anything because you can just call up any brokerage and ask lol. They're quite common knowledge.

Unless of course, project senso prefer its participant to have only a "general" grasp of financial literacy. No problem with that too, its your site and i'll respect the ways you choose to run it with.

regards.

I failed my financial studies.

Mainly because I thought there are Calls and Puts Options but financial experts says Options are only "right to buy stock at a specific share price." Since they are expert they must be right. What other possible reason could it be?



The terms are not "wrong" totally as in "we must nuke it" kind of wrong but there are just minor errors that i thought a professional financial literacy site like senso might take seriously.

For example: "The dealer is called a market maker in the over-the-counter market and a specialist on the exchanges.". You can call your broker and ask if there are specialists on NASDAQ Stock Exchange.

Any simple financial dictionary will tell you what are market makers and what are specialists:
http://www.investopedia.com/ask/answers/128.asp



I'm not married yet. Feel free to do carbon dating on me after i'm dead.

Whether there is any error in the glossary or any action done its up to the admin to decide and not us. It is his site and he can do whatever he wants to it.

However, can I ask you a question? Why are you not interested in financial literacy?