Chapter 12 Section 3 Notes Organized Stock Exchanges The New York Stock Exchange The oldest (1792) and largest (2800 companies) of the organized stock.

Slides:

Advertisements

Similar presentations

Chapter 11: Financial Markets Section 3

Advertisements

A Study of Risk & Reward. Why do companies issue stock? Corporations raise money by selling stockCorporations raise money by selling stock –By selling.

Buying & Selling Stocks Mrs. Wilson: Career & Financial Management.

Chapter 12 Personal Finance

Today’s Schedule – 11/6 PPT: Stock Market Instructions: Playing the stock market HW: – Stock market simulation summary- 1/10.

Chapter 11 Section 3.

Splash Screen Chapter 12 Financial Markets 2 Chapter Introduction 2 Chapter Objectives Explain why saving is important for capital formation.  Explain.

9 Chapter Financial Institutions.

Key Terms from the World of Finance. Key Terms AMEX – Stands for American Stock Exchange. Located in New York City, this stock exchange sells memberships,

CHAPTER THREE SECURITY MARKETS. TYPES OF SECURITY MARKETS n CALL MARKETS have posted hours for trading only “called” securities are for sale to those.

FrontPage: Turn in Savings Calculator worksheet from yesterday if you didn’t finish. The Last Word: Ch 11 Review/Unit 4 Test Tuesday.

G1 © Family Economics & Financial Education – Revised November 2004 – Investing Unit – Language of the Stock Market Funded by a grant from Take.

Financial Literacy. Why Learn About Stocks  The stock market is the core of America’s economic system Stock is a share of ownership in the assets and.

Personal Finance. Define stocks and analyze the benefits of investing. Evaluate stocks in order to get a return on an investment. Compare and contrast.

Financial Markets Chapter 12.

Buying Stock: Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.

Stock markets exists all over the world. The biggest in the United States is the New York Stock Exchange (NYSE), but the NASDAQ is very big also. Other.

Class 2 Valuation of Cash Flow Streams. Common Stock n Stockholders are owners of the firm. n Stockholders are residual claimants. n Stockholders have.

PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 15 Understanding Securities and Investments.

Financial Markets Chapter 11 Sections 3 & 4.

Equities, Futures, & Options Equities – Shares of stock in corporations Large number of buyers and sellers Access to reliable information Market Efficiency.

Chapter 12 Sec. 3 Investing in Equities, Futures, and Options.

Investing Continued.  A stock is a share of a stock  It entitles the buyer to a certain part of the future profits and assets of a corporation selling.

Chapter 11 Section 3 – The Stock Market. Buying Stock Stock or Equities – Represents ownership in a company Issued in portions called shares – Help corporations.

What is a Stock Market?. Where do you go to buy CDs, jeans and books? –Just like a market for CDs, jeans and books, there is a market for stocks People.

Dick and Mac McDonald open the first McDonald’s drive-thru restaurant in San Bernardino, California Total sales for the company are.

1 Risk Cash flows do not match EXPECTATION. Is a company with roller-coaster like sales figure a risky company? Why are Pharmaceutical companies so big?

Have you ever asked to receive your allowance early or asked to be paid early?

Chapter 11.2 notes Why invest?. Basic Investment Considerations Risk-return relationship – the more your risk, the higher the potential return Investment.

Exchange Characteristics. What is the New York Stock Exchange? The New York Stock Exchange (NYSE) lists over 2,500 companies. It is where the stocks that.

Stock Market What is a Stock? A claim on the assets of a corporation that gives the purchaser a share in the corporation Ownership.

Financial Markets Chapter 12 Economics. Goals & Objectives 1. Saving & Capital Formation. 2. Financial System & transferring of funds. 3. Non-depository.

Chapter 11SectionMain Menu Do Now: There are 4 Exchange Student Guides at each table. Take one and begin reading the first two pages. –DO NOT WRITE ON.

Chapter 11: Financial Markets Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 11, Section 3 Objectives 1.Identify the benefits and risks.

C12S3: Investing in Equities, Futures, and Options Main Idea: ▫Equities, or stocks, represent ownership of a corporation.

How The Stock Market Works Today. The New York Stock Exchange Stocks are traded on the “floor” About the size of a football field Contains hundreds of.

The Stock Market Chapter 11 Section 3. Buying Stock Besides bonds, corporations sell stock to raise money Stocks are issued as shares Stocks are also.

1 Chapter Introduction 4 Chapter Objectives Section 3: Investing in Equities, Futures, and Options Click the mouse button or press the Space Bar to display.

Investing in Equities, Futures and Options:.  The Efficient Market Hypothesis states that it is not possible to “beat the market” regularly.  investors.

Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved 1 Chapter 08 Valuing Stocks McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill.

Types of Investments. Journal 12/9/15 If you could be the owner of one major corporation, which corporation would you choose and why?

Write This Down The Stock Market VOCABULARY Equities – stocks that represent ownership shares in corporations Efficient market hypothesis (EMH) – stocks.

Bell Ringer If you could own stock in any company, which one would it be? Why?

Unit 4 Investing. I. Investing / A. Investing vs. Saving / 1. Investing - putting money to work to earn a profit / 2. Saving - foregoing present spending.

Chapter 6 Why Save?.  Saving benefits the economy as a whole. You save bank lends person can now invest or spend. You earn interest bank earns interest.

Stock Markets Being an educated investor will enable you to become financially sound.

STOCKS. WHY DO I CARE? BIG indicator of how economy is doing  Effects increases and decreases in taxes, interest rates, and supply of products You may.

Language of the Stock Market Part 2 Davis High School Financial Literacy Course.

Financial Markets. Saving and Capital Formation Saving money makes economic growth possible One’s person savings can represent another person’s loan Savings.

Stock Market Basics Investing in Financial Assets.

Stock Market Terms What does everything mean?. 52-Week High The highest price for a stock during the past year.

Chapter 9 Section 3 Stocks, Bonds, and Futures Bw6FyPf34.

Chapter 15: Financial Markets Opener. Copyright © Pearson Education, Inc.Slide 2 Chapter 11, Opener Guiding Questions Section 3: The Stock Market –How.

Financial Markets Chapter 11 Section 3 The Stock Market.

G1 © Family Economics & Financial Education – Revised November 2004 – Investing Unit – Language of the Stock Market Funded by a grant from Take.

Chapter 11 Section 3 Investing in Equities and Options.

Risk and Reward Investment options.

Financial Markets.

Chapter 11: Financial Markets Section 3: Buying and Selling Stocks pgs

Chapter 18 Financing and Investing Through Securities Markets

Investing in Equities, Futures,

Investing in Equities and Options

Investing in Equities, Futures & Options Pgs

Financial Markets Chapter 11

Investments: Chapter 11 Section 3

Financial Markets Chapter 12.

What is a Stock Market?.

The Stock Market VOCABULARY

Financial Markets Chapter 12.

Investment in Equities, Futures, and Options

Presentation transcript:

Chapter 12 Section 3 Notes Organized Stock Exchanges The New York Stock Exchange The oldest (1792) and largest (2800 companies) of the organized stock exchanges Has certain rules for both its members and the corporations listed on the exchange There are about 1400 seats (memberships) Members pay several million dollars for each seat Gives you the right to vote on rules and regulations that govern the exchange (profitability and size)

Chapter 12 Section 3 Notes Organized Stock Exchanges The American Stock Exchange Has approximately 750 listed stocks Was the 2 nd largest exchange but has been pasted up by some of the regional exchanges Companies listed on the AMEX tend to be smaller Regional Stock Exchanges Regional exchanges include the Chicago, Pacific (SF), Philadelphia, Boston and Memphis exchanges Many stocks listed on the regional exchanges are also listed on the NYSE Meets the needs of the smaller and middle-sized corporations in their region

Chapter 12 Section 3 Notes Organized Stock Exchanges Global Stock Exchanges Exchanges can be found in such cities as Sydney, Tokyo, Hong Kong, Singapore, Johannesburg, and Frankfurt Computer technology and electronic trading have linked these markets, so most major stocks can be traded around the clock

Chapter 12 Section 3 Notes Over-the-Counter Markets The majority of stocks in the United States are not traded on organized exchanges, they are traded on an over-the-counter market (electronic marketplace) NASDAQ The world’s largest OTC market Trading is executed with a sophisticated computer network that connects investors in more than 100 countries More than 4000 large and small companies are listed on NASDAQ (more than NYSE and AMEX combined)

Chapter 12 Section 3 Class Work Pages Compare the similarities and differences between the Dow- Jones Industrial Average and the Standard and Poor’s Explain the difference between a bull and bear market. 3. Explain the difference between a spot markets and futures markets. 4. Explain how options contracts are different from futures contracts. 5. List 5 possible investments a person could make if funds were available. Rank the investments in order of how much risk each entails (from highest to lowest). Then rank the investments according to expected returns (from highest to lowest). What is the significance of the rankings to the risk- return relationship?