Visual 9.1

Steps in the Life of a Stock

A stock can have a very long life. Stocks are little pieces of ownership in a

corporation. As long as the corporation lives, so can its stocks. The following

explains how a stock comes into existence and how the ownership of

a company is traded among many people.

Success, Inc. needs money, so it sells

one million shares of stock to

                                  Money goes to Success Inc.         [through a Primary Market]         New Stocks go to Morton Brothers, Inc.

Morton Brothers, Inc. (an investment

bank) which provides an Initial Public

Offering (IPO) of shares of Success, Inc.

Secondary Market

Best Customer         Best Customer       Best Customer

The Best Customers can sell their shares

of Success, Inc. stock to others through the

Secondary Market

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