Stocks 2
Buying and Selling Takes place on stock exchanges By computer Public must use licensed broker or online service Largest Exchanges New York Stock Exchange (NYSE) Nasdaq Tokyo Stock Exchange London Stock Exchange Shanghai Stock Exchange
Understanding the news… Indexes Track certain stocks to give an idea of the overall market Dow Jones Industrial Average: Weighted average of 30 stocks on NYSE & NASDAQ Apple, Boeing, Coke, Disney, Nike, IBM, Walmart S&P 500: 500 stocks chosen from different sectors Autozone, Best Buy, Facebook, ebay, Kohl’s NASDAQ Composite: all the companies on the NASDAQ Activision, Google, Comcast, Starbucks Other indexes by region, country, industry, size,……
Bulls and Bears Bull Market: Positive, growing, going up, “buy” Bear Market: Negative, shrinking, going down, “sell”
Classifying Stocks By Industry By Size Small Cap (<$2 billion Angie’s List, Papa John’s) Mid Cap ($2-10 billion Cabela’s, Wolverine) Large Cap ($10 billion+ Apple, Coke) By “Type” Growth: Company believed to be growing, bright future Value: Stock believed to be underpriced, lower than it should be worth