Advice on Speakers for my TEAC Amplifier


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My name is Piran Merchant. I live in Bombay, India.
I recently purchased a TEAC integrated stereo amplifier from a reputable source.

The specifications of which, are as given below:
power output:50 W + 50 W (RMS) (8ohms)
total harmonic distortion: better than 0.05%
frequency response: 5 Hz to 30,000Hz (-3db)
input sensitivity: all inputs: 300mV
impedance: 100kilo ohms

They are currently hooked up to my Sony Discman and a pair of speakers, which belong to my old Sony Mini-HiFi Component System.

I would soon like to upgrade to a pair of floor-standing speakers with an inbuilt sub-woofer.

I would like to know what are the issues I should pay attention to when it comes to the compatibility of my TEAC amplifier and the speakers that I intend to buy.
What should be the technical specifications of such speakers if they are to work seamlessly with my TEAC amplifier?

Another question: There is a button on my TEAC amplifier which reads "Source Direct" . What is this button meant for?

And lastly, I have connected my Discman to the TEAC amplifier through the Discman's "line out". What happens if I connect the Discman through the Discman's Headphones outlet?

I would greatly appreciate it if you could take the time out to help me with your expertise.

Thanks a million

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