+ stocks. + publicly traded stocks — see on the big stock markets—anyone can buy; all publicly...

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Stocks

+Stocks

Publicly traded stocks — see on the big stock markets—anyone can buy; all publicly traded stocks are given symbols to shorten their name on the tickers

We are mostly interested in public stocks

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+How to read stocks/stock definitions PE or P/E or Price Earnings Ratio — stock price divided

by its earnings per share in the previous year Round Lot — 100 shares of stock — usually traded in

round lots; sales of 37900 means 3,790,000 shares were traded

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+How to read stocks/stock definitions Stock prices—price of a share, reported as:

HIGH—the most anyone paid LOW—the least anyone paid CLOSE—the last trade of the day CHANGE—the difference between the previous day’s close

and the current price

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+Measures of Stock Performance

Dow-Jones Industrial Average—most popular measure of stock market performance on the NYSE—% change of 30 active and popular stocks

Standard and Poor’s 500—price changes of 500 stocks; indicator of overall market performance

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+Measures of Stock Performance

Bull Market—a “strong” market with prices moving up (a bull strikes by driving its horns up)

Bear Market—a “mean” market with the prices of equities moving sharply down (a bear strikes by swinging its paw down)

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+Securities Exchange

Securities exchanges—places where buyers and sellers meet to trade securities

New York Stock Exchange (NYSE)—oldest and most prestigious; located on Wall Street in NYC; 3,000 companies listed to trade

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+Securities Exchange

The American Stock Exchange—AMEX—also located in NYC; lists 1,000 stocks

Regional Stock Exchanges—too small or too new to be listed; meets the needs of smaller and middle-sized corporations in their regions

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+Securities Exchanges

Global Stock Exchanges—allows major stocks to be traded around the clock, all over the world

Over the Counter Market—electronic marketplace for securities that are not traded on an organized exchange (NASDAQ is the listing that provides information on stocks that this group trades)

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+Simulation You will choose 5 stocks You have $100,000 to spend Fill out all boxes for Monday We will track the performance of your stocks throughout the week THIS WILL BE FOR A GRADE!

MONDAY TUES WED THURS FRIStock Share

sPrice Total Price Value Price Value Price Value Price Value

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+11/10 Warm-Up You will choose 5 stocks You have $100,000 to spend Fill out all boxes for Monday We will track the performance of your stocks throughout the week THIS WILL BE FOR A GRADE!

TUESDAY WED THURS FRIStock Shares Price Total Price Value Price Value Price Value

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