Download - 03 stock market investing
Verbal Bellringer1. Write “Computer Lab, CPU LAB 252– Econ”
for Monday Tuesday, Wednesday in your planner or on your phone
2. Why do you think people invest their money?
3. What is the opportunity cost of investing money?
Label Cornell notes
• “How does the Stock market work?”
• “Why do people invest?”
Questions or Comments
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Bellringer• Stocks• Bonds• Dividends• Stock Market• Stock Symbols• Stock ticker• NYSE, NASDAQ• Dow Jones• Bull vs. Bear• Industries
1 Make a KWL chart about the stock market and investing
Investing in the USA• Stocks
• Bonds
• Stock Market
• NYSE, NASDAQ
• Dow Jones
• Bull vs. Bear
• Industries
Investing
• Brokerage Account
• Old School – Stock Broker
• Higher fees, but advice
• New School – DIY online
• Lower fees, little to no help
Famous InvestorWarren Buffett (1930-
One of 3 Richest people in the world ($52 Billion)
Successful investor
Earns only pays himself $100,000/year
“hold investments”
Bonds
• Government backed
• Very Safe
• Low risk
• Low return
• Loan for a time
• Corporations also offer them
Stocks• Ownership in a
publically traded corporation
• Issued to raise capital
• Some pay dividends
• Voting rights
Stocks
• Stock Calculation:• $25.90/share• You have $1000 to
invest in Disney• $1000 investment• $25.90 per share• You can buy 38.6
shares with $1000
• Dividend: $0.35 /year
Investment divided by share price = shares you can buy
Stocks• Stock Calculation:
• $25.90 share price
• You own 38 shares
• Price $28/share
$28 X 38 = $1064 now!
Total investment = share price X shares owned
Stock Exchange• Stock Market
• Place where Stocks are traded
• Most famous: NYSE
• Wall Street
• Others: NASDAQ,
• Nikkei
• London
• Hong Kong
• Chicago
Stock Symbols
• Makes trading easier
• EX: Disney = DIS
• Use finance.google.com to look them up
• Read a stock ticker
“Dow Jones”• Dow Jones” –
average 30 top companies
• MMM, AA, AXP, T, BAC, BA, CAT, CVX, CSCO, KO, DD, XOM, GE, HPQ, HD, INTC, IBM, JNJ, JPM, KFT, MCD, MRK, MSFT, PFE, PG, TRV, UTX, VZ, WMT, DIS
Industries• Field of business
• Stocks follow others
• “Chinese increase car purchases”
• Tough times for biotechnology
Stock Market Game• $10,000 to invest
• Must spread out among 6 industries
• Winner: 2 excused assignments (December 6)
• http://www.marketwatch.com/game/pueblo-spring2012
Old School Stock Market Simulation• Sellers/Buyers
• 2 minute trading day
• 3 companies, Ford (F) , Campbell's (CPB), Adobe (ADBE)
Groups of 1-2
2. On a half sheet write down how much money Klein gave you
3 Write down your goal for this simulation
News of the Day
• American businessmen fear US government debt
• Consumer demand for soup increases by 10%
• Chevy announces new hybrid model
News of the Day
• Mexican tomato growers watch 80% crop killed
• President Obama announces increase in income taxes
• Adobe announces record breaking year
News of the Day
• US signs trade deal with Australia, tariffs on cars eliminated
• Consumer debt at an all time high
• US consumers frustrated with Indian tech support
News of the Day
• Gas price up to $5/gallon in US
• US computer companies sell 20% more computers last month
• US consumers get rebate check of $200
News of the Day
• US Unemployment Rate increases to 10%
• US tourism increases for the second straight month
• Microsoft announces new product to compete with Acrobat Reader
Closure• Write 3 “How” or “Why”
questions in question section
• Write your summary based on:
• “How does the Stock market work?”
• “Why do people invest?”• Use new vocabulary
Closure
4 How much did you finish with?
5 What effect did the news have on your investing?
6 Explain why you think this was a Bear or Bull market?
7 Fill in 3 things you learned today on the L column of #1
On your half sheet
6 How much did you start out with?
7 How much did you finish with?
8 What effect did the news have on your investing?
9 How well did you stick to your goal?
10 What would you do different if we were investing in the real world?
11 Explain why you think this was a Bear or Bull market?