Different kinds of stocks

There are thousands of stocks to choose from, so investors usually like to put stocks into different

categories. http://money.cnn.com/pf/101/index.html

Public Co. are different Sizes…

A company's size refers to its market capitalization is the current share price times the

total number of shares outstanding (volume)

How many people own this stock The more people that own it, the

bigger its VOLUME is…..

Large-cap: A stock with a high level of capitalization, usually at least $5 billion market value.

Large-cap companies tend to be established and stable

they tend to have slow growth Tend to Pay dividends to shareholders

Money at the end of the year if the company did really well

A way to say “THANKS” for investing in us

Small-cap

Small-capitalization (small cap) stocksThe stocks of companies whose market value is less than $1 billion.

Small-cap companies tend to grow faster than large-cap companies but they tend to also be VOLATILE: Risky

and typically use any profits for expansion of the company instead of paying dividends.

Volume – how many shares are bought in a day/ sold in a day…trading activity!

EPS – Earnings Per Share – On average, how much $$ stockholders

are making per share

Equity, their WORTH:analyses assets

(everything they own) vs. liabilities (debt)

Always check a company’s

•This is found on their BALANCE SHEET

Always check a company’s Net Income (profitability) Analyzes their Revenue (Sales) and

Expenses (Bills) This is found on their Income

Statement

On top of your stock winnings…. You want a company that will pay

you DIVIDENDS… Money paid to stockholders, normally out

of the corporation's current earnings or accumulated profits.

Bonus…an extra, a present to say thank-you to shareholders….

All dividends must be declared by the board of directors and are taxable as income to the recipients.

Where Stocks are Traded: Exchanges: Public Co. can either hire NYSE or Nasdaq to be in charge of their

trades

The New York Stock Exchange: NYSE Wall Street, in NYC It is the largest stock exchange in the world by

dollar volume Nasdaq: National Association of Securities Dealers

Automated Quotations It is the largest electronic screen-based

equity securities trading market in the United States

AMEX – American Stock Exchange

Stock Market Indictors: If the DJ and the S&P is UP on average, than overall, the

economy is considered to be doing well If the DJ and the S&P is DOWN on average, than overall,

the economy is considered to be doing poorly

The Dow Jones It is the oldest continuing U.S. market index Today, the averages consists of 30 of the largest and most

widely held public companies in the United States. http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average

The S & P is a stock index that tracks 500 prominent companies http://en.wikipedia.org/wiki/Dow_Jones_Composite_Average

Dow Jones The best known US index of stocks. A price-

weighted average of 30 actively traded blue-chip stocks, primarily industrials including, stocks that trade on the New York Stock Exchange.

The Dow, as it is called, is a barometer of how shares of the largest US companies are performing.

Every 3 months (quarter), the DOW is re-evaluated to see if any company should be “kicked out”

The S & P 500 Standard & Poor's breaks stocks into 10 sectors

Best performers within those 10 sectors , and dozens of industries. Generally speaking,

different sectors are affected by different things. So at any given time, some are doing well while others are not.

In most cases, finance, health care, and technology tend to be the fastest growing sectors, while consumer staples and utilities offer stability with moderate growth. The other sectors tend to be cyclical, expanding quickly in good times and contracting during recessions

Who is Warren Buffet?http://www.youtube.com/watch?v=nHeraR449qw- 7 minutes

http://www.youtube.com/watch?v=nmWTtYg95YI&NR=1

An investor, businessman, and philanthropist

the most successful investors in history, the largest shareholder and C.E.O. of Berkshire Hathaway

in 2008 was ranked by Forbes as the richest person in the world with an worth of approximately $62 billion

http://finance.yahoo.com/q?s=BRK-A

STOCK MARKET LINGO

Review vocabulary – see worksheet

Quiz tomorrow on vocab and what moves stock prices!

Interview with Warren Buffet

http://video.msn.com/v/us/msnbc.htm?g=e1fa1902-1cea-4cbd-9a24-9d18e86828c8&f=00&fg=copy

http://video.msn.com/?mkt=en-us&brand=msnbc&fg=copy&vid=e1fa1902-1cea-4cbd-9a24-9d18e86828c8&from=00

Watch last night’s Lightening Round with Jim Cramer

http://www.cnbc.com/id/15838459

How the Market is doing….

Bull Market Bear Market

The Martin Frankel Case:Watch the story

\\hestia.havsd.int\JMccarty\McCarty's Personal Finance\Unit 7 --STOCK MARKET\The Martin Frankel Case - CNBC_com.mht

Microsoft Word Document

http://www.berkshirehathaway.com/message.html

Online Quiz http://cgi.money.cnn.com/tools/cgiquiz

/cgiquiz_101.jsp?id=5

Stock Market Stock Dividends Stock Ticker Symbol Bear Market Bull Market Broker Income Statement Balance Sheet

http://www.slashfilm.com/2009/08/20/michael-moores-capitalism-a-love-story-movie-trailer/