– stock market portfolio, mutual funds, cd’s… pay attention, take notes and ask...

– Stock Market Portfolio, Mutual Funds, CD’s…

Pay attention, take notes and ask questions…how much can you make?

Industries

• Name some different types of business’s-• What type of service does it provide?

• E.g…travel, entertainment, transportation, energy, insurance, banking, pharmaceuticals (drugs)…

Industries…cont!NIKE – CLOTHINGPEPSI – BEVERAGEHOME DEPOT –

CONSUMERABLESGENERAL MOTORS-

AUTOMOBILESMICROSOFT –

COMPUTER SOFTWARE

APPLE- COMPUTER HARDWARE

EXAMPLE –e.g…

• You buy 100 shares of Nike Stock at 50.00 per share!

• Total invested=5000$• You hold the stock for 2

years, and sell the 100 shares at 70.00!

• Total sale=7000$• Investor makes 2000

dollars!

Ticker Symbol and Share Price!

• Nike – NKE• Pepsi – PEP• Home Depot – HD• General Motors - GM• Microsoft – MSFT• Apple – APPL• Why? To make it easier.

Abbreviations are much easier to use.

1 share = 20 cents – thousands of dollars.

You can buy any amount of shares the company offers.

10 shares at 10.00$ each=100.00 invested!

Example on the web!

Economic News – Good vs. Bad!

• If unemployment rate, inflation numbers, and consumer confidence and spending numbers are good = Usually means good news for the Stock Market as a whole.

• If a single company like DELL reports high quarterly earnings = usually means the stock price will increase.

FEAR vs. GREED

– BEAR Market

• Consumer Confidence down

• Terrorist Attack• Bad economic forecast

• Results in people pulling their money

= lower the stock price

BULL Market

-Consumer Confidence up!

-Economic Forecast Good!

-Strong Economic Numbers!

-Results in people putting more money in = higher stock prices

Two Major U.S. Markets

• NYSE – New York Stock Exchange

• Wall street / New York!

• http://finance.yahoo.com/

• NASDAQ - National Association of Securities Dealers Automated Quotations

• Brought about because the NYSE was getting too large

• Mostly comprised of technology stocks eg. MSFT (4 symbols)

Two Major Indexes

• DJIA – Dow Jones Industrial Average

(comprises of 30 well diversified companies)

• S&P 500 – Standard and Poor’s 500

(comprises of 500 well diversified companies)

What Rules to Follow:

• Diversify your Portfolio

• Where can we research? www.morningstar.com

• Find the best performing industries

• Within those industries, find the best performing stocks

• E.g….Technology, MSFT!

Stock Market Project

• 7 parts / sections of the assignment

• Each sections worth 25 points --- 175 + directions followed (25 pts) = 200 pts possible!

• Directions to follow throughout the project!

• Pay attention…take notes…and help each other out!

• We will be going to the lab/library to complete some of the project in class!

Vocabulary Terminologies…You need to define all of the following terms…IN YOUR OWN WORDS!

Complete Sentences!

• Stock• Share• NYSE• Stock Split• NASDAQ• Diversify• S&P 500• Ticker Symbol• Bear Market• 401 K

• Bull Market• Capital Gain• DJIA• I.P.O – “initial public

offering”• Mutual Fund• Portfolio• S.E.C – “securities

exchange commission”• Stock Broker• Wall Street