stock basics

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STOCK BASICSSTOCK BASICSUnderstanding Common Terms

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Introduction Introduction

You are a business ownerStocks can build great wealthIncrease your understanding

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AgendaAgenda

What Are StocksDifferent Types Of StocksHow Stocks TradeWhat Causes Stock Prices To ChangeMajor IndicesHow To Read A Stock Table/QuoteBulls and BearsConclusion

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What Are Stocks? What Are Stocks?

The Definition of a Stock– Stock is a share in the ownership of a

companyBeing an Owner

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Debt vs. EquityDebt vs. Equity

Why does a company issue stock?

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RiskRisk

No GuaranteesLonger Time HorizonHistorical ReturnWhat does this mean to me?

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Power of CompoundingPower of Compounding

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

10Years

20Years

30Years

No additionalInvestment

$15,000 additionalInvestment peryear

Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index.

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Major IndicesMajor Indices

Standard & Poor’s 500 (S&P 500)Dow Jones Industrial Average (Dow)NASDQ 100

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How Stock TradeHow Stock Trade

New York Stock ExchangeNASDQOther Exchanges

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What Causes Stock Prices to What Causes Stock Prices to ChangeChangeSupply and DemandEarnings Season

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Bulls and BearsBulls and Bears

Down on the farm

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How To Read a Stock QuoteHow To Read a Stock Quote NIKE INC CL B (NYSE:NKE) Last Trade:63.20 Trade Time:10:59AM ETChange: 0.79 (1.23%) Prev close:63.99 Open:63.30 Bid:63.20 Ask:63.24 1y Target Est:68.50 Day's Range:63.15 - 63.99 52wk Range:45.78 - 66.57 Volume:288,700 Avg Vol (3m):3,701,580 Market Cap:31.52B P/E (ttm):19.12 EPS (ttm):3.31 Div & Yield:0.74 (1.20%)

*Nike (NKE) is used for example purposes only, and is not a recommendation to buy or sell.

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SummarySummary

Learned about stocksUse Knowledge to help othersFeedback of training session

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