The Mechanics of a Transaction. Once an investor and his or her account executive have decided on a particular transaction, the investor gives the account executive an order for that transaction. A market order is a request that a security be purchased or sold at the current market price. Although most people still prefer to use the telephone to place orders for buying and selling stocks, a growing number of investors are using computers to complete security transactions. Another kind of computerized transaction is called program trading.
Program trading is a computer-driven program to buy or sell a group of stocks.
Brokerage firms are free to set their own commission charges. Table 20.1 shows typical commission charges for some round-lot transactions. To be useful, an investment goal must be specific and measurable. It must be tailored to you so that it takes into account your particular financial circumstances and needs. It must also be oriented toward the future.