The Stock Market And exchange
Stock Market stock exchange Actual building where publicly held shares are traded Locations in Canada: Toronto, Montreal, Vancouver, Winnipeg, Calgary
Stockbrokers Is an agent for all transactions with stock exchanges Trading done through internet
David Ricardo Rule: Investors react to bad news by under valuing certain stocks and to good news by overvaluing them. It is a risk.
Mutual funds More passive investment Gets managed for you by a manager Lower risk
Nasdaq National Association of Securities Dealers Automated Quotation One of the largest stock markets in the world No central location for trading, brokers acting on behalf of clients place orders with Nasdaq brokers called market makers
General Trend Indicators Stock exchanges use indexes to track patterns in stock prices The dow S&P/TSX Nasdaq
Dow Jones Industrial average (the Dow) Most popular Calculated daily Based on the closing prices of 30 blue chip (safe and stable) American corporations traded on NY Stock Exchange (representing all key areas of uSA economy)
Dow cont’d Is considered a mirror of the stock market as a whole If dow goes up 5%, safe to assume that the entire NYC Stock Exchange going up 5% too Can be used to track patterns in stock prices on NY Exchange
S&P/TSX composite index Canadian Changes in this index believed to mirror what happening in Toronto Stock Exchange Can be used over time to track patterns in stock price changes and assess performance of particular stock to others
Nasdaq composite Index Electronic network that functions as a stock market for over 4100 companies, with many technology companies listed . Its index is an indicator of its daily activity.