Problem of the day
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Problem of the day…. What is an IPO?. Problem of the day…. The bank returns a check cashed by you because there was insufficient funds to cover the check. The check is called:. Stock Market Basics. Novice Level. Bought 100 Shares x $10.00 = $1,000 Sold 100 Shares x $20.00 = $2,000

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Problem of the day….

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Problem of the day

Problem of the day….

  • What is an IPO?


Problem of the day1

Problem of the day…

  • The bank returns a check cashed by you because there was insufficient funds to cover the check. The check is called:


Stock market basics

Stock Market Basics


Novice level

Novice Level

  • Bought 100 Shares x $10.00 = $1,000

  • Sold 100 Shares x $20.00 = $2,000

  • $2,000 - $1,000 = $1,000

  • You gained $1,000

  • Assuming no commission was taken by the broker


Apprentice level

Apprentice Level

  • Bought 155 Shares x $12.00 = $1,860

  • Sold 155 Shares x $23.00 = $3,565

  • $3,565 - $1860 = $ 1,705

  • You gained $1,705

  • Assuming no commissions


Master level

Master Level

  • Bought 2,200 shares x $20.00 = $44,000

  • Sold 2,200 shares x $18.00 = $39,600

  • $39,600 - $44,000 = - $4,400

  • Loss of $4,400

  • Assuming on commission


Grand master

Grand Master

  • Bought 200 shares x $20.76 = $4,152

  • Sold 100 shares x $ 23.67 = $2,367

  • Sold 100 shares x $19.21 = $1,921

  • $2,367 + $1,921 - $4,152 = $136

  • You gained $136

  • Assuming no commission


Return on investment

Return on Investment

  • Percentage increase or decrease

  • New Number – Old Number / Old Number

  • (N – O) / O

  • Example:

  • $60.00 original number

  • $70.00 current number

  • Calculate percentage increase or decrease:

  • (70 – 60) /60 = 10/60 =

  • 16.67% gain


Return on investment1

Return on Investment

  • Beginning Balance of $5,000 in brokerage account

  • Don’t add or subtract from principal

  • Current Balance of $4,900

  • Calculate return on investment

  • (4,900 – 5,000) / 5,000 = -100/5000

  • = -2%


Calculate return on investment

Calculate Return on Investment

Review:

Go back and calculate the return on investment from the four previous problems: (novice to grand master)


Answers

Answers

  • Novice: (2,000 – 1,000)/ 1,000 = 1,000/ 1,000= 100%

  • Apprentice: ( 3,565 – 1,860) / 1,860 = 1,705/1,860 = 91.67%

  • Master: (39,600 – 44,000) / 44,000 =

    • 4,400/44,000 = - 10 %

  • Grand master: (2,367 +1,921 – 4,152)/ 4,152 =

  • 3.28%


Closure homework

Closure/ Homework

Calculate the return on your investments in our stock market game

Assume no commissions right now


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