What do we know about the stock market?. “A public entity for the trading of company stock at an agreed price” One of the most important places for.

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Presentation transcript:

What do we know about 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

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

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)

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

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

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?

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

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

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

Identify 5 things that you believe that commodities in today’s economy Research and list 3 companies that you may want to invest in

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.