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Tell Me About It…

Tell Me About It…. What do we know about the stock market?. Playing The Stock Market. What is the Stock Market. “A public entity for the trading of company stock at an agreed price” One of the most important places for corporations to raise money

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Tell Me About It…

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  1. Tell Me About It… • What do we know about the stock market?

  2. Playing The Stock Market

  3. What is the Stock Market • “A public entity for the trading of company stock at an agreed price” • One of the most important places for corporations to raise money • Corporation- Publicly owned business which has multiple levels of hierarchy

  4. Corporate Makeup Shareholders Board of Directors CEO/President VPs/Regional Directors Everyday Employees

  5. Commodities • Success of the SM at any given time is dependant on what the public believes are commodities at that time • Commodities • Something that is in high demand

  6. Commodities

  7. Irrational Behavior • Unlike saving your money in a bank, investing in the stock market comes with substantial risk • Stock prices have, on many occasions, taken sizeable losses • Crash! • 1929, 1973, 1992, 2001 (among others)

  8. Market Regulation • Securities and Exchange Commission • Government created organization that watches for illegal activities in the market • Inflicts penalties on guilty parties (corporation or individual) • The goal is to make the SM a fair place of business

  9. Transparency • All aspects of a publicly traded corporation has to be made available to the public • Leadership changes • Philosophical changes • Earnings • Earnings usually are reported quarterly (4 times a year) to the public • How much did the company make or lose over a certain time period

  10. Investing In Stock • Regular trading • Purchasing the stock at the list price, paying a commission, and earning or losing money based on the profit of the company • What to look for? • What does the corporation do/ bring to society? • Is that in high demand? • What is the corporate makeup/ does it have strong leadership?

  11. Regular Trading • Disney Corporation • September 1st: 1 share = $20 • September 1st: Purchase 100 shares ($2000) • October 1st: 1 Share = $30 • October 1st: Sell 100 Shares ($3000) • October 1st: 1 Share = $10 • October 1st: Sell 100 Shares ($1000)

  12. Identifying Trends and Strategies • Buying stock = wanting the stock to increase • Selling Short = wanting the stock to decrease • Stop Order = setting a price and when the stock hits that price it will automatically sell your shares

  13. Reading a Stock Quote Current Price & Daily Change Daily/Yearly Range Volume and Charts

  14. Option Trading • Allows you to “play” a stock that you normally wouldn’t be able to afford • The play that a stock will “strike” a certain price by a certain time • Call Stock = Increase in stock price • Put Stock = Decrease in stock price

  15. For Next Class • Identify 5 things that you believe that commodities in today’s economy • Research and list 3 companies that you may want to invest in

  16. Answer the following • What is a commodity? Name 3 commodities in today’s society. • Briefly explain the makeup of a corporation. Make an argument how the least powerful people in a corporation may be the most important.

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