 Due Now: Take home exam! Put it in the turn in bin! Answer the following in 3-5 complete sentences:  What do you think of when you hear the phrase “Stock Market”? List as many words or phrases that you can think of.

"In investing, what is comfortable is rarely profitable." - Robert Arnott

 Investing - involves using the money you have saved to earn even more money.  Stocks – investment in the “share of a company” Stocks  Bonds – investment in the “debt of a company” Bonds  Mutual Funds – “share of a fund” that may invest in many different stocks and/or bonds Mutual  Futures – investment in future value of a particular item (e.g. corn, soybeans, oil) Futures  Precious Metals – gold, silver, platinum  Real Estate

 According to the rule of 72, if you deposit $100 in an account that pays 9% compound interest, how long will it take that initial deposit to reach $200?  Vocabulary! InvestmentRisk (high/moderate/low ) RewardHow it works (Explain in 2 sentences) Government Bonds Corporate Bonds Stocks Mutual Funds

 What is the Stock Exchange? What is the Stock Exchange?  Where stocks are bought and sold  Place (physical or virtual) where buyers and sellers meet to buy and sells shares in companies  Physical market: Actual building with traders on the floor of the New York Stock Exchange (NYSE)NYSE  Virtual market: electronic or computerized market with no physical location

 Stock investments with $100,000  With a partner (individual if you really want to)  Will trade each week until the end of the year  Must justify your investments for each trade!

 A company with good products or services and a good management team. Also, a company that you like as a customer.  A company in an industry that is growing and/or has a positive outlook. Look at their 52 week performance.  A company that is in the news (for good reasons!).

Sample Stock Quote

Invision Technologies (INVN) Closing Price ($) 32% Increase

50% Decline Commerce One (CMRC) Closing Price ($)

 Helps you avoid across the board losses if something goes wrong in a particular industry  For example: if all of your stock holdings were in the homebuilding industry and the housing market crashed, it’s likely your holdings would suffer.  You can own different stocks and still not be diversified. If you held stock in a homebuilder, a financial institution, a major home retailer and a building material supplier you would not be diversified.

 Food  Retail (Clothing, grocery)  Entertainment (movies, sports)  Transportation  Banking

 Green Technology (wind, solar, hydro)  Pharmaceutical  Defense  Health Care  Energy (oil)

 Technology  Telecommunication  Manufacturing  NOT Government

 Research 5 companies  Make smart investments – you are competing with your classmates!  Start by looking at their stock history  At least 2 different industries  Must be traded in North America (NYSE or NASDAQ)  No Penny Stocks  Go to msbuterawghs.weebly.com Gov/Econ Resources  Stock Research  Follow instructions! Write on paper or in google docs

 Each team starts with $100,000 in virtual account.  Track performance of your portfolio during the remainder of the semester.  Team with the most money in their portfolio at the end of the simulation wins: Each person on the winning team receives a reward.  Contest will end the week of finals.