Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business –...
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Transcript of Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business –...
![Page 1: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/1.jpg)
Stock Market
Introduction to the Stock Market
![Page 2: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/2.jpg)
What is a stock?
Partial ownership in a business– Dividends = Profits paid out to stock holders four times a year or
re-invested into the company Types of Stocks
– Common Stocks – people owning stock can vote for the directors of the company
Example: NW Natural Gas, GM– Preferred Stock – fixed dividends, no voting privileges
Example: Nike, McDonalds Other words used for stocks
– Equities– Securities– Shares
![Page 3: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/3.jpg)
What is the difference between a mutual fund and a stock?
Mutual fund – Investment through a broker into a fund that has
multiple stocks in many companies– Benefits:
Lower risk because you are diversifying your investment
![Page 4: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/4.jpg)
Major Stock Markets
New York Stock Exchange (NYSE)– Wall Street
National Association of Securities Dealers Automated Quotations (NASDAQ)– Mostly technology stocks– Automated
![Page 5: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/5.jpg)
How do I purchase stock?
Brokerage House– Full Service Brokers
Dean Witter, Merrill Lynch, Prudential Bach
– Discount Brokers Charles Schwab, Ameritrade, eTrade
![Page 6: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/6.jpg)
Reading Stock Pages
http://finance.yahoo.com/q?s=NKE
![Page 7: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/7.jpg)
Major Stock Markets
New York Stock Exchange (NYSE)– Wall Street
![Page 8: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/8.jpg)
Major Stock Markets
NASDAQ– National Association of Securities Dealers
Automated Quotations– Mostly Technology Stocks
![Page 9: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/9.jpg)
General Terms
Earnings per share: Amt of profit each share is entitled
Going Public: Company plans to sell stock Share: investor’s ownership of the profits,
losses, and assets of a company Market Indices: tracks performance of
specific group or market of stocks
![Page 10: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/10.jpg)
Market Indices
Dow Jones: index of 30 “Blue Chip” US stocks of industrial companies (financial, computer, retail companies)
NYSE: New York Stock Exchange tracks the movements of all common stocks
Nasdaq: Tracks performance of 100 of the largest most actively traded stocks
![Page 11: Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649e925503460f94b9813f/html5/thumbnails/11.jpg)
Dow Jones
Coca Cola Home Depot AT&T American Express Bank of America Dupont GE
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Nasdaq Stocks
Amazon.com Apple Costco Comcast Google Dell