Entering into the Stock Exchange

In order to avoid any misunderstanding by your intermediaries, it is advisable to be perfectly clear and precise about the specification of your orders.

Your order must contain the following elements at least:

1. Your account number, 2. Your name, 3. The code of the stock or TICKER symbol, 4. The label of the stock, 5. The direction of the order (Purchase or Sale), 6. Quantity of values, 7. Type of order 8. Term of the order

The code of the stock corresponds to the single code with each value quoted on the Stock Exchange. This code is known by experts under the name of TICKER. A Ticker is generally made up of 4 letters identifying the name of the quoted company. For example, Ticker of the Yahoo Company is “YHOO”, the one of Google is “GOOG” , and Microsoft “MSFT”.

The type of the order can be:

• At market price: the best price available at the time the order is executed in the trading marketplace.
• A limit order: an order to buy or sell a stated quantity of a security at a specified price or at a better price.
• A stop order: an order type that becomes a market order when the stock trades at or below the specified price. Thus, the price at which the order is executed may not necessarily be the specified stop price. A sell stop is placed below the current trading price and is used to protect unrealized profits or limit losses on holdings should the price begin to decline.
• A stop-limit order combines a stop order and a limit order. The order becomes a limit order once the security trades at the designated stop price. You instruct a broker to buy or sell at a specific price or better, but only after a given stop price has been reached or passed.

The term of the order specifies a period during which your order will remain active on the market. Generally, your intermediary gives you the choice between 1 day and 1 month. If you pass via a Online brokerage, you also have the possibility of cancelling the order.

To place your order, you have the choice in general between these different methods, mail, Fax, Telephone or Internet. An online brokerage account is convenient and fast but can be susceptible to computer crash. Ask if you will be able to do trades by telephone, if need be.