Trading Terms:

• Day Trading - The purchase and sale of the same stock symbol on the same day.

• Day Trader -  An active stock trade who generally holds positions for a very short time and makes several trades each day. Day traders are individuals who are trying to buy and sell stocks quickly, often making dozens of trades in a single day and usually closing all positions at the end of each day.

• Level 1 Quotes - Real-time quote of the current best bid and ask prices for a given stock. Level 1 quotes show only the best bid and ask.

• Level 2 Quotes - Real-time quotes of all the bid and ask prices for all market makers and ECNs for a given stock. Level 2 quotes enable investors to identify all the market makers and ECNs offering quotes for a stock.

• Level 3 Quotes - The same as Level II Quotes plus the ability to enter quotes, execute orders, and transmit other information. Only NASD member firms which are market makers have the ability to access Level 3 quotes.

• Technical Analysis - A method of evaluating securities charts by relying on the assumption that previous market data can help predict future (usually short-term) market trends.

• After hours & Pre-market Trading - Buying and selling securities during a period of time when the markets are officially closed. Stocks are traded after hours through ECNs.

• Electronic Communication Network (ECN) - An electronic system that brings buyers and sellers together for the electronic execution of stock trades. ECNs show quotes of the orders entered into the network and allows these orders to be executed against. Electronic Communications Networks (ECNs) they internally match buy and sell orders. ECNs represent their highest bid prices and lowest ask prices on the open market.

Basic Terms:

• Stock - An instrument that signifies an ownership position in a corporation. Each share of stock represents a proportional share in the corporation. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only corporations can have stock issued. Stock is also known as equities or securities or corporate stock.

• Nasdaq - A computerized system established to facilitate trading of broker dealers with current bid and ask price quotes . Nasdaq (the National Association of Securities Dealers Automated Quotation system) does not have a physical trading floor that brings together buyers and sellers. Instead, all trading on the Nasdaq exchange is done over a network of computers. Orders for stock are sent out electronically on the Nasdaq, where market makers and ECNs list their buy and sell prices. Once a price is agreed upon, the transaction is executed electronically. Nasdaq is also know as Over The Counter (OTC).

• NYSE - New York Stock Exchange. The oldest and largest stock exchange in the U.S., located on Wall Street in New York City. The NYSE is responsible for setting policy, supervising member activities, listing securities, and overseeing the member seats. The NYSE still uses a large trading floor in order to conduct its transactions. In order to facilitate the exchange of stocks, the NYSE employs individuals called specialists who manage the buying and selling of specific stocks and to trade those stocks when no one else will. The NYSE has the most stringent set of requirements in place for the companies whose stocks it lists. NYSE is also know as the Big Board.