How To Trade Stocks On Stock Exchange Online

You can place trades for stocks, Exchange Traded Funds (ETFs), options, mutual funds and bonds.

Stocks

You can trade nearly any stock on any domestic exchange – blue chips on the New York Stock Exchange (NYSE), technology stocks on the NASDAQ, Over-The-Counter Bulletin Board (OTCBB) securities, and pink sheet securities. When trading stock, it is your responsibility to ensure you have sufficient cash or available funds before placing a Buy order. You are also responsible for having the necessary shares in your account before placing a Sell order. Stock trades are settled within three business days after the transaction.

Bulletin Board Stocks

To Trade on OTCBB, place orders on OTCBB and pink sheet stock orders on the online stock trading ticket. The types of orders that can be placed for these securities are outlined in the OTCBB Securities Trading Rules, which are available on your trading platform. Orders on these types of securities may represent a greater investment risk as these securities represent low-priced shares that do not qualify to be traded on a national stock exchange or on NASDAQ for various reasons. Instead, dealers trade these securities on a manual basis and are not required to make a market in the security or hold shares in inventory. Because these securities are not always traded through automated or electronically linked execution systems, accurate quotes and immediate executions may not be available. It is not uncommon for the manual execution process to take several minutes.

Exchange Traded Funds

Exchange Traded Funds (ETFs) are registered investment companies that trade on an exchange like a stock. ETF orders can be placed on the stock trading ticket. These funds track established market indexes, yet trade like a single stock. Commission fees apply. Those who practice frequent dollar-cost averaging and active traders may generate trading costs that outweigh any cost benefit. Trading prices may not reflect the actual net asset value (NAV) of the underlying securities.

Be sure to carefully consider the particular ETF’s investing objectives, risks, charges and expenses involved before investing in an ETF. To learn how to obtain a prospectus containing this and other important information, please visit the Research & Ideas section on our Web site or call a TD AMERITRADE representative. Please read the prospectus carefully before investing.

Options

Due to the inherent risks involved and the complexities of certain options transactions, options are not suitable for all investors. Industry regulations require certain conditions be met before

Investment strategies that include options trading expose investors to additional costs, increased risks and potentially rapid and substantial losses. Please review Characteristics and Risks of Standardized Options before incorporating options trading into your investment strategy. This booklet, published by the Options Clearing Corporation, contains important information on standardized options and options markets.

Mutual Funds

Before investing in a mutual fund, be sure to carefully consider the particular fund’s investing objectives, risks, charges and expenses involved.

Bonds

Fixed-income securities play a role in many portfolio strategies. Chose from a large number of bond selections, including U.S. Treasury, corporate, government, collateralized mortgage obligations (CMO) and municipal bonds.

When To Place and Execute Trades On NYSE

Market Sessions

Regular Trading

Trades are executed during normal market hours (currently 9:30 a.m. to 4 p.m. ET). If an order is placed after market hours, it will be sent to the marketplace for the next business day’s trading session. Options market hours are generally 9:30 a.m. to 4:15 p.m. ET. Most equity and narrow-based index options stop trading at 4 p.m., and broad-based index options stop trading at 4:15 p.m. Mutual fund orders placed after a specific fund’s cut-off time will usually receive the following business day’s NAV.

Extended-Hours Trading

Pre-market and after-hours trading sessions. The A.M. session is from 8 a.m. through 9:15 a.m. ET, Monday through Friday. The P.M. session is from 4:15 p.m. through 8 p.m. ET, Monday through Friday (excluding market holidays). This service allows clients to trade more than 8,000 equity securities outside of normal market hours.