1 / 12

Problem of the day….

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

bessie
Download Presentation

Problem of the day….

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Problem of the day…. • What is an IPO?

  2. 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:

  3. Stock Market Basics

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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%

  10. Calculate Return on Investment Review: Go back and calculate the return on investment from the four previous problems: (novice to grand master)

  11. 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%

  12. Closure/ Homework Calculate the return on your investments in our stock market game Assume no commissions right now

More Related