Getting To Know The Stock Market By: Mrs. Megan Brewer The Stock Market Welcome to your virtual tour of the stock market! Its 9:30 am, the opening bell has just rung and we have a lot of work to do! Get out your notebook whenever you see a vocabulary word in italics or an activity record the definition (if the definition isnt directly given try to figure it out or answer) Click the arrow below to find out what is in store for you. What is a stock? When a company wants to raise capital (money) they sell off tiny pieces of their company and become publicly traded These tiny pieces are called stocks if you own a share of stock you own a piece of the company and are invited to vote on and help make decisions at a stock holders meeting The more shares you own, the more control over the company you have Market Basics Each share of a stock has a price that changes daily based on supply and demand Activity: Find or think of a current event that you think may effect the supply or demand for a stock. Explain how it would effect the supply, demand and price. Market Basics Continued As an investor, your goal is to buy low and sell high. In other words, buy a stock when it is cheap and sell it when it has peaked earning you the most profit! To buy a stock you would contact a broker or brokerage firm that has rights to buy and sell stocks on the stock exchange Market Basics the BIG Picture Many people want to know in general how the stock market is doing so they look at indexes like the Dow Jones Industrial Average The Dow is an average of how 30 large industrial companies/stocks are doing Activity: Find and list 5 companies that are included in the Dow Jones Industrial Average Bears and Bulls? No were not talking about your favorite sports teams A Bear Market is one where stock prices are falling and people are pessimistic A Bull Market is one where stock prices rising and there is a feeling of optimism among investors Activity: Watch the following video on bears vs. bulls and record what 3 factors generally cause people to be bearish or bullish video How do you read a stock table? On the following slide you will find a handout from the NYSE. You will also receive a copy of this handout please save it for future reference What is the NYSE? The NYSE or New York Stock Exchange is just one of many stock exchanges in the world It is located in New York City on Wall Street and was founded in 1817 Brokerage houses buy 1 year licenses to trade at the NYSE A Virtual Tour of the NYSE Please watch this video in its entirety it is an actual student field trip to the NYSE floor. Click the link then scroll down and click New York Stock Exchange Floor Tourlink Calculating Gains and Losses Calculating your gains and losses is simple! You need to know the following: The price you bought the stock at (PB) How many shares you own (S) The price you sold the stock at (PS) PB x S= Total amount you spent PS x S= Total amount after sale Subtract the 2 total amounts to find out if you have a loss or gain Complete the stock market worksheet handed out Sources Images except where noted from Microsoft Clipart Gallery Investopedia. Market Mentalities: Bulls vs. Bears video linked from: New York Stock Exchange Floor Tour Video linked from:NYSE Educational Materials: How to Read Stock Tables downloaded from: United States Patent and trademark Office Soundex: Stock Market Bell MP3 downloaded from: Wikipedia. New York Stock Exchange obtained from: