stock market
DESCRIPTION
STOCK MARKET. Two Things to do with Money. SAVE. INVESTMENT. Income today that allows future benefit. Income not used for consumption. What is a Financial Intermediary?. A financial institution that collects funds from savers & then invests that money in loans & other financial assets. - PowerPoint PPT PresentationTRANSCRIPT
STOCK MARKET
Two Things to do with Money
Income not used for
consumption
Income today that
allows future benefit
INVESTMENTSAVE
What is a Financial Intermediary?
•A financial institution that collects funds from savers & then invests that money in loans & other financial assets
Financial Intermediaries
Financial Intermediaries
Commercial BanksSavings and Loans
Credit UnionsFinance Companies
Mutual FundsPension Funds
Life Insurance Companies
savingsloans
assetsInterest & dividends
Savers Borrowers
Financial System consists of:
•Banks• Stock Markets•Bond Markets• Insurance Markets
•A ____________ of a ______________which can be bought, sold, or traded as an investment
Stock
COMPANYSHARE
Shareholder
•A _______________ or institution that ___________ a share of stock in a corporation
PERSONOWNS
Stock Exchange
•A secondary market where securities (stocks & bonds) are bought and sold
http://www.youtube.com/watch?v=_2Kt4moES0U
American Stock Exchange (AMEX)• Third largest stock exchange• Located in NYC• Is traditionally where smaller
companies & new companies start• Requirements are much less strict
than those on NYSE
NASDAQ
• Second largest stock exchange in the U.S.• _____________ (computerized) stock
market listing of over 5,000 companies•Many ________________company stocks
are sold here
Electronically
tech
New York Stock Exchange (NYSE)• Is considered a ______________exchange
b/c all trades must be made on the ___________________________• Largest & oldest exchange
Minimum Qualifications• Earning Power• Assets• Market value of common stock $18 million• 1.1 million publicly held shares• At least 2,000 shareholders
centralized
Exchange floor
Dow Jones Industrial Average (DIJA)
• A measure of stock market prices based on the weighted average of _____________
________________________ on the NYSE. • Dow is measured in ___________ that
represent dollars
Dow 30 Companies - CNNMoney
30leading stocks
points
S&P 500
•An average of 500 popular stock prices used to represent the level of general stock prices
•Considered a more accurate measure of the U.S. stock market than the Dow Jones
Securities and Exchange Commission (SEC)
• Federal agency established in 1934 to protect investors and enforce laws in the securities (stocks & bonds) industry.
Bull Market
•Stock prices are risingHints•Wide• Low• Heavily traded• 15• Below 30
Bear Market
•Stock prices are falling
http://www.youtube.com/watch?v=hashPaU7Dpk
Day Trader
•Constantly trading online to make a living
Dividend
•Company shares profits with Stockholders•Payments may be in the form of cash or stocks•Considered income so it is taxable
Stock Split
•When a company divides its shares in smaller, more economical shares.• The most common split ratios are 2-for-1
and 3-for-1, which means that the stockholder will have two or three shares for every share held earlier. The price of the new shares is adjusted downward.• Stock splits are usually done to attract new
investors.
Capital Gains
•Profit that is made from selling an asset•Considered income so it is taxable
Mutual Fund
•A pool of money managed by an investment company that gathers money from individual investors and purchases a range of financial assets
Parent Company
•A company that controls other companies by owning at least 50% of voting stock
Ex: General Mills Kraft Johnson & Johnson Pepsi Co
STOCK MARKET GAMEhttp://www.cnbc.com/id/49918947