Stock Market Basics What you need to know…

What is a Stock? A stock is a piece of a company If you own a “stock” that means that you actually own a piece of a company – How much would one stock of Ford cost? – Are there any companies that you are interested in?

Where to Begin? A company will “Go Public” for in order to generate more money – This money is invested into the company – Could be used for new buildings – Development on new products Lets think about Apple – Does anyone know where they started?

How are Stocks Purchased? Stocks can be purchased a couple of ways. – Through use of a Broker Trained professional licensed to purchase stocks for people – Independently Through the use of online investing sites – Scottrade, sharebuilder, etc.

Quotes Each company that is public has a stock quote The quote represents the current price of a stock – Otherwise known as Price Per Share – A stock quote will also provide other important statistics

Buy Low, Sell High What do you think this means? Forecasting… – What is forecasting? – What can you look at? 52 Week Range PE ratio Price Trends Charts