The Equity Trader Course, w. CD-ROM

- Foreword Alfred R. Berkeley III, CEO, Pipeline Trading Systems LLC.
- Preface.


CHAPTER 1 Getting a Grip on Trading.
- Order Arrival.
- The Bid-Ask Spread.
- The Liquidity Dimension.
- Overview of TraderEx.
- Getting Started with TraderEx.
- From the Contributors 38
- Using Trading Simulations on an Academic Trading Floor: Where the Rubber Meets the Road (Richard D. Holowczak).
- Reflections of a Finance Professor (Michael S. Pagano).
- On-the-Job Training at Mako (David Segel).

CHAPTER 2 All About Liquidity.
- From Information to Prices.
- Defining Liquidity.
- Liquidity and Transaction Costs.
- Intraday Price Volatility, Price Discovery, and Quantity Discovery.
- The Origins of Liquidity.
- Illiquidity's Footprints in the Transaction Records.
- Discussion.
- From the Contributors.
- Satisfying Institutional Traders' Quest for Liquidity (Peter Jenkins).
- Giving Customers Greater Choice in Trade Execution: The NYSE Hybrid Market (John A. Thain).
- Market Reaction to New Information (Claudio Werder and René Weber).

CHAPTER 3 How to Use Limit and Market Orders.
- The Order Book and the Market.
- Order Types.
- A Look at the Market.
- A Reservation Price.
- Cost of Placing a Limit Order.
- Compensation for Placing a Limit Order.
- Should You Submit a Limit Order or a Market Order?
- How Should You Price Your Limit Orders?
- The Bid-Ask Spread.
- Handling a Large Order.
- An Option Trader's View of Limit Orders.
- The Big Picture.
- From the Contributors.
- The Emergence and Growth of an Electronic Order-Driven Market (Gerald Putnam).
- The Use of Limit and Market Orders (Rainer Riess and Uwe Schweickert ).
- Order-Driven Markets: The Route to Best Execution (Jean-François Théodore).
- Exercises 158

CHAPTER 4 Choosing between Continuous Trading and a Periodic Call Auction.
- How is a Call Auction Used?
- Call Auctions and Market Structure.
- Bookbuilding.
- Order Handling Differences.
- NASDAQ's Crosses.
- How

ROBERT A. SCHWARTZ is Marvin M. Speiser Pro-fessor of Finance and University Distinguished Professor in the Zicklin School of Business, Baruch College, CUNY. Before joining the Baruch faculty in 1997, he was Professor of Finance and Economics and Yamaichi Faculty Fellow at New York University's Leonard N. Stern School of Business, where he had been a member of the faculty since 1965. Professor Schwartz received his PhD in economics from Columbia University. He has published over fifty journal articles and fifteen books, including Equity Markets in Action (Wiley), which he coauthored with Reto Francioni. He has served as a consultant to various market centers including the New York Stock Exchange, the American Stock Exchange, NASDAQ, and Deutsche Börse, and has been an associate editor for several finance journals. In 1995, Professor Schwartz was named the first chairman of NASDAQ's Economic Advisory Board, where he served until the spring of 1999.

RETO FRANCIONI has been the CEO of the Executive Board of Deutsche Börse AG, since November 2005, and was president and chairman of the board of SWX Group. In 1993, Francioni joined Deutsche Börse AG, where he was responsible for its entire cash market and later became its deputy chief executive officer. Earlier in his career, he was a director of the corporate finance division at Hoffmann-LaRoche AG, Switzerland. Francioni has a law degree and PhD in law from Zurich University and is Professor of Economics and Finance at the Zicklin School of Business, Baruch College, CUNY.

BRUCE W. WEBER is Associate Professor of InformationManagement at the London Business School, where he teaches information management and trading and financial market structure in MBA, master's, and executiveprograms. He has a PhD in decision sciences from the Wharton School of the University of Pennsylvania. His research on strategic uses of IT and the computerization of financial services has been published in a number of academic journals, and