What you’ll learn to do: identify the securities exchanges (NYSE, OTC, NASDAQ) and the types of transactions that occur at each exchange

Money (and wealth) are transferred not only through financial institutions such as banks, credit unions, insurance companies, and other institutions but also through the purchase and sale of securities. Securities (primarily stocks and bonds) are traded (bartered) on exchanges established for this specific purpose. Although they are not a part of or regulated by the Fed, they are still an essential part of the monetary and financial system that drives the economy. Three of the most active and common exchanges are the NYSE (New York Stock Exchange), OTC (Over the Counter), and NASDAQ (National Association of Securities Dealers Automated Quotations). In this section of the module you will learn more about these exchanges and what each one contributes to the financial system of the United States economy.

Learning Activities

The learning activities for this section include:

• Reading: Investments and Markets: A Brief Overview
• Self Check: Securities Exchanges

Take time to review and reflect on this activity in order to improve your performance on the assessment for this section.