– stock market portfolio, mutual funds, cd’s… pay attention, take notes and ask...
TRANSCRIPT
– Stock Market Portfolio, Mutual Funds, CD’s…
Pay attention, take notes and ask questions…how much can you make?
Industries
• Name some different types of business’s-• What type of service does it provide?
• E.g…travel, entertainment, transportation, energy, insurance, banking, pharmaceuticals (drugs)…
Industries…cont!NIKE – CLOTHINGPEPSI – BEVERAGEHOME DEPOT –
CONSUMERABLESGENERAL MOTORS-
AUTOMOBILESMICROSOFT –
COMPUTER SOFTWARE
APPLE- COMPUTER HARDWARE
EXAMPLE –e.g…
• You buy 100 shares of Nike Stock at 50.00 per share!
• Total invested=5000$• You hold the stock for 2
years, and sell the 100 shares at 70.00!
• Total sale=7000$• Investor makes 2000
dollars!
Ticker Symbol and Share Price!
• Nike – NKE• Pepsi – PEP• Home Depot – HD• General Motors - GM• Microsoft – MSFT• Apple – APPL• Why? To make it easier.
Abbreviations are much easier to use.
1 share = 20 cents – thousands of dollars.
You can buy any amount of shares the company offers.
10 shares at 10.00$ each=100.00 invested!
Example on the web!
Economic News – Good vs. Bad!
• If unemployment rate, inflation numbers, and consumer confidence and spending numbers are good = Usually means good news for the Stock Market as a whole.
• If a single company like DELL reports high quarterly earnings = usually means the stock price will increase.
FEAR vs. GREED
– BEAR Market
• Consumer Confidence down
• Terrorist Attack• Bad economic forecast
• Results in people pulling their money
= lower the stock price
BULL Market
-Consumer Confidence up!
-Economic Forecast Good!
-Strong Economic Numbers!
-Results in people putting more money in = higher stock prices
Two Major U.S. Markets
• NYSE – New York Stock Exchange
• Wall street / New York!
• http://finance.yahoo.com/
• NASDAQ - National Association of Securities Dealers Automated Quotations
• Brought about because the NYSE was getting too large
• Mostly comprised of technology stocks eg. MSFT (4 symbols)
Two Major Indexes
• DJIA – Dow Jones Industrial Average
(comprises of 30 well diversified companies)
• S&P 500 – Standard and Poor’s 500
(comprises of 500 well diversified companies)
What Rules to Follow:
• Diversify your Portfolio
• Where can we research? www.morningstar.com
• Find the best performing industries
• Within those industries, find the best performing stocks
• E.g….Technology, MSFT!
Stock Market Project
• 7 parts / sections of the assignment
• Each sections worth 25 points --- 175 + directions followed (25 pts) = 200 pts possible!
• Directions to follow throughout the project!
• Pay attention…take notes…and help each other out!
• We will be going to the lab/library to complete some of the project in class!
Vocabulary Terminologies…You need to define all of the following terms…IN YOUR OWN WORDS!
Complete Sentences!
• Stock• Share• NYSE• Stock Split• NASDAQ• Diversify• S&P 500• Ticker Symbol• Bear Market• 401 K
• Bull Market• Capital Gain• DJIA• I.P.O – “initial public
offering”• Mutual Fund• Portfolio• S.E.C – “securities
exchange commission”• Stock Broker• Wall Street