Academy 01Introduction to stock-market

investing

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Est. 1983 – Lustrum VI

Core: Investment groups

Highlight: Investment Week & Symposium

Welcome to B&R Beurs

Peter Paul de Vries, B&R alumnus

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What Can You Expect?

Introduction Weekend

Formation Period

Kickoff Investmen

t Competitio

n

October

Social Drinks, Exclusive Events & In-House Days

November -

SymposiumInvestment Week

May

Investment Awards

July

Academy

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By B&R for B&R◦ Sharing knowledge

Basic to advanced lectures

PowerPoints now, VoD “soon”

B&R Academy

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“The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit. Investing also can include the amount of time you put into the study of a prospective company, especially since time is money.” - Investopedia

Investing

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Making a profit

Having something to talk about

Thrill

Fun

Purpose of investing

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Asset managers1. Blackrock $3,6tr.2. UBS $2,3tr.3. Allianz $2,2tr.

Pension Funds1. Japan Government Pension Fund $1,4tr.2. Norway Government Pension Fund $0,7tr.3. Pensioenfonds ABP $0,4tr.

Mutual Funds

Hedge Funds

Companies

Who is investing?

You!

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Money markets

What can you investin?

Bonds

Commodities

Indices Derivatives

Break

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First stock exchange in the 17th century◦ Dutch East Indies Corporation

Not much has changed

History of stocks

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Thomas has a company

Thomas needs money

Thomas raises 20$ from Daniel by issuing stocks

How does it work?Thomas

60$

Thomas60$

Daniel20$

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Company wants to raise money◦ More investments◦ Change the capital structure

Liquid instrument

Dispersion of ownership

People wants stocks because of good returns

Why do they exist?

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Value derived from dividends

Anticipation of the future

Gordon Growth Formula

Stock Value

𝑆0=∑𝑡=0

𝑇 𝐷𝑖𝑣𝑡

(1+𝑟 )𝑡

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Growth/Value◦ Is the stock price mainly driven by the company?

Pro/Anti cyclical◦ How much does the stock price move with economy?

Trend/momentum◦ Will the stock behave in the same way as last year?

Stock Styles

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Growth/Value◦ Is the stock price mainly driven by the company?

Pro/Anti cyclical◦ How much does the stock price move with economy?

Trend/momentum◦ Will the stock behave in the same way as last year?

Stock Styles

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Country◦ German stocks

Industry◦ Pharmaceuticals

Style◦ High dividend yield

Combination◦ German pharmaceuticals with a high dividend yield

Grouping Stocks

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What’s a stock index?

What’s their function?

Stockindex

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Dutch Tulip Mania

Bubbles are fun

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Internet bubble Housing bubble Credit bubble ... Oil bubble?

Could that happen again?

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Watch financial news Next week:

◦ Bonds◦ Buying a stock ◦ Binck

Assignment