US Stock Market

Major Stock Exchange Introduction

The US stock market is the largest capital market in the world. The total market capitalization of listed companies and trading volume are the highest among all stock equity markets all over the world. It also contains the most varieties of corporate types of listed companies.

Leading enterprises with the highest market value and trade volume like CitiGroup, Intel, Microsoft and Coca-Cola, choose to list on the US stock market because of the strong capital raising power of US stock market. With a standard cash custodian account, investors may trade blue-chip shares and stocks of many other leading technology companies in the US market. Phillip Securities, with the newly launched on-line US stock trading service, provides you an opportunity to enlarge your investment horizon in the world biggest stock market.

Generally speaking, large enterprises tend to be listed on the New York Stock Exchange or the NASDAQ Stock Market.

The New York Stock Exchange

The New York Stock Exchange (NYSE) has established for more than 200 years, it is the largest US exchange with the highest reputation. Until 2007, more than 2300 enterprises were listed on NYSE, over 15 trillions total global market capitalization.

Since 2000, NYSE has been processing mergers and acquisitions actively. In 2005, it acquired another electronic exchange, Archipelago. In April 2007, NYSE announced merging with Euronext and formed a new holding company named NYSE Euronext. This merging successfully expanded its territory to Europe, as well as the expansion of the products from the equities to derivatives. In June 2008, NYSE completed the acquisition of America stock exchange (Amex).

The listing requirements of NYSE are stringent. The enterprises which have no profitable performance records are not allowed to enter the New York Stock Exchange. Most of the 500 historic largest enterprises, including mostly listed on NYSE. They are included General Electric, Exxon Mobil, Wal-Mart, Citigroup and Johnson & Johnson are well known for investors.

The NASDAQ Stock Exchange

The NASDAQ Stock Market (NASDAQ) is established in 1971 and it is the well-recognized U.S. technology stocks trading center. This electronic trading market is different from the New York Stock exchange. As it is not a fixed location, the transactions are carried out through the electronic trading. Every transaction is negotiated between securities dealers directly by computers, telephone network or cable network.

Major Index Introduction

There are many indices related to stock market, their importance should not be overlooked. Especially, the Dow Jones Industrial Average Index, Standard & Poor’s 500 Index and the NASDAQ Composite Index etc, these 3 indices have already deemed by the market, investors and even regulators as high quality and reliable indicators. For the retail investors, it is not only to recognize these 3 majors indices, fully understanding to the indices is needed. The first procedure of mastering the increasingly sophisticated stock market is to understand the stock market indices.

Dow Jones Industrial Average (DJIA)

The Dow Jones Industrial Average or DJIA is a price-weighted, the oldest and certainly the most popular stock-market indicator series, formed in 1884. Although it is a price-weighted average of the 30 NYSE components and only one forth of market capitalization, DJIA is a good indicator with strong history since the large enterprises are included in DJIA. Until the end of 1999, Microsoft and Intel are included in the components, it is indirect reflected that the management of DJIA accept the importance of science and technology stocks.

The NASDAQ Composite

NASDAQ stock market has its own index, to reflect and measure the market performance. NASDAQ composite index includes thousands of companies listed in NASDAQ market. The index is associated with all listed companies. Hence, it is truly a weighted index.

NASDAQ 100

The NASDAQ-100 is a stock market index of 100 of the largest domestic and international non-financial companies listed on the NASDAQ. It is a modified market value-weighted index. The companies' weights in the index are based on their market capitalization, with certain rules capping the influence of the largest components. It does not contain financial companies, and includes companies incorporated outside the United States. Both of those factors differentiate it from the Dow Jones Industrial Average, and the exclusion of financial companies distinguishes it from the S&P 500 Index.

Standard & Poor’s 500

Standard & Poor’s 500 is referential since it is bases on 500 large companies involving various industries, The fund management companies in most regions of US and other part of the world also regards S&P 500 as an vital reference index. In fact, the first index future contracts used S&P 500 as the underlying assets in early 80s.

Russell 2000

The Russell 2000 Index is a small-cap stock market index.

The Russell 2000 is by far the most common benchmark for mutual funds that identify themselves as "small-cap", while the S&P 500 Index is used primarily for large capitalization stocks. It is the most widely quoted measure of the overall performance of the small-cap to mid-cap company shares. The index represents approximately 10% of the total market capitalization of the Russell 3000 Index. The average market capitalization for a company in the index is around $530 million. The ticker symbol on most systems is ^RUT.

The Market Index formed by the investment bank

Many investment banks have their own subsidiaries, are responsible for the preparation of different indicators to reflect the stock, bond and other markets performance. The most famous one is Morgan Stanley Capital International (MSCI), MSCI prepared a series of financial market index, and many over-the-counter trading activities are carried out on these indices, or engage in investment, hedging and arbitrage activities.

Benefits in US Stock

Online Trading and Price Quote Platform

To facilitate our clients with first-hand investment opportunities, the most up-to-date US stock price quotes are available by using POEMS.

Margin Financing Service

With a maximum of 80% margin trading that can increase your purchasing power, allowing you to higher your investment return with lower capital.

Stop-loss and Limit Order

“Stop Loss” or “Stop Gain” orders are available in advance to eliminate the risk caused by time lag.

Diversification of Risk

Through investing in the US securities, the market risk for trading only Hong Kong stock market can be reduced.

US Stock Trading Platform

Real-time Live Quote of US stocks listed in the NYSE and NASDAQ market are available in Professional version. With a combined real time live quote and trading platform, you may grasp every golden opportunity to growth your wealth.

Starting from AUGUST 2014, CyberQuote(HK) Limited is fully responsible for providing price quote service for U.S. securities. For enquiry, please email cqcs@cyberquote.com.hk or call (852) 2277 6781 during day-time office hours from Monday to Friday.

Account Opening Procedures

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Document Renewal W8 Form, IRS,US

Please send your renewal document to w8service@phillip.com.hk

Download related documents

Trading Information

CountryTrading Session(HongKong)Trade CurrencySettlement Currency & DurationEarliest HK time to accept orders for next trade day
** We offer brokerage services for limited scope of companies listed at US OTCBB.
U.S.A
(NYSE)
(Nasdaq)
(OTCBB)**
Monday ~ Friday
Summer
21:30 - 04:00
Winter
22:30 - 05:00
USD USD
HKD
T + 2
Tuesday ~ Saturday
at 06:15
after previous market close

Commission

Please click here for commission details.

Depository Information

Please click here for depository steps and related depository bank account information.

Stock for Margin Financing

We offers shares margin-financing services up to 80%, 30 stocks of the Dow Jones Industrial Average are eligible for 50% or above margin ratio. 500 index stocks in Dow Jones Industrial Average can also enjoy preferential mortgage rate, please call to us to make further inquiries.


Stock Margin Financing Ratio Inquiry

General Electric Co (Stock Code: GE)

General Electric Co, (stock code: GE). The world largest integrated enterprise, their businesses include household products, lighting products, industrial automation equipment, medical products, motors, power distribution and control, engine, producing electricity, nuclear power business, commercial and military aircraft engines. NBC broadcasting business and GE capital are also their main subsidiaries.

Website: www.ge.com

Exxon Mobil Co. (Stock Code: XOM)

Formerly known as Exxon business, engaged in the energy, refining crude oil, natural gas and production-related activities of basic products. Business of Exxon Mobil Co at the same time dealing with coal, copper and other minerals businesses, also involved in the energy business.

Website: www.exxon.mobil.com

Wal-Mart Store (Stock Code: WMT)

Department stores throughout the world including Argentina, Brazil, Canada, Germany, South Korea, Mexico, the United Kingdom and china.

Website: www.walmart.com

Pfizer Inc. (Stock Code: PFE)

The world largest pharmaceutical company, diversified products are sold worldwide. Drugs and Consumer Products are their two major business sectors. Viagra is their most famous drug in recent years.

Website: www.pfizer.com

Citigroup (Stock Code: C)

One of the largest financial institutions, their businesses involved in every aspect of the entire financial market in the world, the offices are found in more than 100 countries.

Website: www.citigroup.com

American International Group (Stock Code: AIG)

One of holding companies engaged in insurance and financial services, mainly the general insurance and the life insurance, also have asset management service, retirement plan.

Website: www.aig.com

Johnson & Johnson (Stock Code: JNJ)

Providing health services, business is globally divided into three parts, they are consumer, pharmaceutical and professional markets.

Website: www.jnj.com

International Business Machines Corp. (Stock Code: IBM)

One of the ancestor of computer industry and business all over the world, offering consultant services and computer operations including research and development, manufacturing and marketing etc. Different levels of software and hardware businesses are furnished. With operations in 150 countries, more than half of their revenue generate from outside of the US.

Website: www.ibm.com

Coca-Cola Co (Stock Code: KO)

Supplying beverage business since 1886, the drinks are sold in more than 200 countries and also bottles and cans filling businesses are served.

Website: www.coca-cola.com

Procter & Gamble Co (Stock Code: PG)

Manufacturing and sales of consumer products such as baby health, beauty, home, health care, food and drinks and toiletries products.

Website: www.pg.com

Microsoft Corp (Stock Code: MSFT)

The world largest software and computer operating systems company, explore the video game market is their objective over the past six months, the product called, X-Box. Trying to gain more market share with rivals Sony and Nintendo.

Website: www.microsoft.com

Intel Corp (Stock Code: INTC)

The world largest microprocessor manufacturer, engaged in research, development, and manufacture of microprocessor business, products are selling worldwide.

Website: www.intel.com

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