Investments Stock Market Pay attention, take notes and ask questions…how much can you make?
Industries • Name some different types of business’s- • What type of service does it provide? • An industry is the type of business that the company operates…(ex. Construction, food services, energy, technology)) industry -
NIKE – CLOTHING PEPSI – BEVERAGE HOME DEPOT – CONSUMERABLES GENERAL MOTORS- AUTOMOBILES MICROSOFT – COMPUTER SOFTWARE APPLE- COMPUTER HARDWARE Industries…cont!
EXAMPLE –e.g… NIKE • You buy 100 shares of Nike Stock at 50.00 per share! • Total invested=5000$ • You hold the stock for 2 years, and sell the 100 shares at 70.00! • Total sale=7000$ • Investor makes 2000 dollars!
Nike – NKE Pepsi – PEP Home Depot – HD General Motors - GM Microsoft – MSFT Apple – APPL Why? To make it easier. Abbreviations are much easier to use. 1 share can be a cheap as a penny and as expensive as hundreds of dollars. You can buy any amount of shares the company offers. 10 shares at 10.00$ each= 100.00 invested! Example on the web! Ticker Symbol and Share Price! Ticker Symbol Share Price
Economic News – Good vs. Bad! • If unemployment rate, inflation numbers, and consumer confidence and spending numbers are good = Usually means good news for the Stock Market as a whole. • If a single company like DELL reports high quarterly earnings = usually means the stock price will increase.
BEAR Market Consumer Confidence down Terrorist Attack Bad economic forecast Results in people pulling their money = lower the stock price FEAR vs. GREED FEAR GREED BULL Market -Consumer Confidence up! -Economic Forecast Good! -Strong Economic Numbers! -Results in people putting more money in = higher stock prices
GROWTH STOCKS Cheaper share price Smaller companies with lots of room to grow RISKIER! VALUE STOCKS Big Companies Less risky Share price is more expensive Less room to grow TWO TYPES OF STOCK
NYSE – New York Stock Exchange Wall street / New York! http://finance.yahoo.com/ NASDAQ - National Association of Securities Dealers Automated Quotations Brought about because the NYSE was getting too large Mostly comprised of technology stocks ex. MSFT (4 symbols) Two Major U.S. Markets
Two Major Indexes • DJIA – Dow Jones Industrial Average (comprises of 30 well diversified companies) • S&P 500 – Standard and Poor’s 500 (comprises of 500 well diversified companies)
There are other investments besides the Stocks… • Things that you should consider when you get older and you begin saving for retirement! • 401 k (403b) • IRA – individual retirement account • Mutual Funds • Life insurance We are forced to pay into Social Security…but don’t rely on it…you have to prepare that it might not be available!
What Rules to Follow: • Diversify your Portfolio • Where can we research? www.morningstar.com • Find the best performing industries • Within those industries, find the best performing stocks • E.g….Technology, MSFT!
7 parts / sections of the assignment Each sections worth 25 points --- 175 + directions followed (25 pts) = 200 pts possible! Directions to follow throughout the project! Pay attention…take notes…and help each other out! We will be going to the lab/library to complete some of the project in class! Stock Market Project
Stock Share NYSE Stock Split NASDAQ Diversify S&P 500 Ticker Symbol Bear Market 401 K Bull Market Capital Gain DJIA I.P.O – “initial public offering” Mutual Fund Portfolio S.E.C – “securities exchange commission” Stock Broker Wall Street Vocabulary Terminologies…You need to define all of the following terms…IN YOUR OWN WORDS!Complete Sentences!