Chapter 2 The Financial Market and Interest Rates Chapter Objectives

Over the Counter Market (OTC)

• For firms who don’t meet listing requirements of major exchanges.
• Avoids major exchange reporting requirements and fees.
• More stocks and over 90% of corporate bonds traded on the OTC than on organized exchanges.
• Trading done through brokers and broker - dealers.
• National Association of Security Dealers Automated Quotation System. (NASDAQ)
• “Screen Based – Floorless Market”

Original Dow Jones Companies

American Cotton Oil Company – now part of Unilever.

American Sugar Company – became Domino Sugar in 1900 - now Domino Foods, Inc.

American Tobacco Company – broken up in a 1911 antitrust action.

Chicago Gas Company – now an operating subsidiary of Integrys Energy Group.

Distilling & Cattle Feeding Company – now Millennium Chemicals which is in Chapter 11 bankruptcy.

General Electric Company – still in operation