Stock Market GameStock Market Game

Ticker Symbol – Symbol identifying the Ticker Symbol – Symbol identifying the stock – this is how you identify stocks for stock – this is how you identify stocks for purchase and also when researchingpurchase and also when researching

Example: Apple – AAPLExample: Apple – AAPL

Ford = FFord = F

Share Price – How much it Share Price – How much it costs for one share of the costs for one share of the stockstock..

Ticker symbolsTicker symbols

To enter transactions in the SMG, you must To enter transactions in the SMG, you must enter the ticker symbol of the company or fund enter the ticker symbol of the company or fund you wish to buy/sellyou wish to buy/sell

New York Stock Exchange companies have New York Stock Exchange companies have one to three lettersone to three letters

NASDAQ & American Stock Exchange NASDAQ & American Stock Exchange companies have symbols that may be as long companies have symbols that may be as long as 5 letters! as 5 letters!

Some are easier to figure out than othersSome are easier to figure out than others

Guess which symbol is Coca-ColaGuess which symbol is Coca-Cola

CCLAYCCLAY CCLAFCCLAF KOKO KOFKOF CCHOFCCHOF

CCHCCH CCHBFCCHBF COKECOKE CCECCE

Which exchange is Coke traded on?

52 Week Range – The highest price and 52 Week Range – The highest price and lowest price that the stock has traded for lowest price that the stock has traded for in the last year. in the last year.

Open – the share price at the opening of Open – the share price at the opening of the stock market today.the stock market today.

Volume/AverageVolume/Average The total number of shares traded The total number of shares traded

(bought/sold) today compared with the (bought/sold) today compared with the average number of shares traded each average number of shares traded each day.day.

Market CapMarket Cap The total value of a company. The shares The total value of a company. The shares

outstanding multiplied by the price per outstanding multiplied by the price per share.share.

P/E Ratio – Price Earnings Ratio It is the stock P/E Ratio – Price Earnings Ratio It is the stock price divided by the Earnings Per Share. It is the price divided by the Earnings Per Share. It is the measure of how much the investor will pay for measure of how much the investor will pay for $1 worth of earnings or profits $1 worth of earnings or profits

Example – GoogleExample – GoogleStock PriceStock Price 362.00 = 27.20362.00 = 27.20Earnings Per ShareEarnings Per Share 13.31 13.31

**High P/E within an industry can indicate a young, **High P/E within an industry can indicate a young, fast growing company. (growth)fast growing company. (growth)

**Low P/E within an industry indicates a less risky **Low P/E within an industry indicates a less risky stable company. Companies with low P/E ratios stable company. Companies with low P/E ratios are more likely to pay dividends. Can also are more likely to pay dividends. Can also indicate that a company is undervalued.indicate that a company is undervalued.

Dividend/YieldDividend/Yield

Definition of 'Dividend Yield'Definition of 'Dividend Yield'A financial ratio that shows how much a company pays A financial ratio that shows how much a company pays

out in dividends each year relative to its out in dividends each year relative to its share share priceprice.. In the absence of any capital gains, the  In the absence of any capital gains, the

dividend yield is the return on investment for a stock. dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:Dividend yield is calculated as follows:

Annual Dividends per Share Annual Dividends per Share 

Price Per SharePrice Per Share

Earnings Per Share – Total profit earned by Earnings Per Share – Total profit earned by the company divided by the total number the company divided by the total number of shares outstanding. A high EPS of shares outstanding. A high EPS (Earnings Per Share) is good!!(Earnings Per Share) is good!!

Beta NumberBeta Number

Beta Number measures the risk or Beta Number measures the risk or volatility of the stock.volatility of the stock.

If the Beta Number is less than 1, the If the Beta Number is less than 1, the stock is stable – the stock price changes stock is stable – the stock price changes less than the overall market.less than the overall market.

If the Beta Number is greater than 1, the If the Beta Number is greater than 1, the stock is more volatile and the stock price stock is more volatile and the stock price changes more than the overall market.changes more than the overall market.

Recommended WebsitesRecommended Websites

www.googlefinance.comwww.googlefinance.com

www.yahoofinance.comwww.yahoofinance.com

MSN MoneyMSN Money CNN MoneyCNN Money MarketwatchMarketwatch