Stock Market

What are Some of Your Favorite Companies?

What is the Stock Market? The market in which shares of publicly held companies are issued and traded for money. It provides companies with access to capital in exchange for giving investors a slice of ownership in the company.

Who Owns these Companies? http://www.nasdaq.com/symbol/ge/institutional-holdings http://www.nasdaq.com/symbol/aapl/institutional-holdings http://www.nasdaq.com/symbol/pep/institutional-holdings

What is the Difference? Publicly Traded Privately Traded A public company, is a company that has sold a portion of itself to the public Offers some of its stock to shareholders , on the stock market Shareholders have claim to part of the company's assets and profits The company is owned by the company's founders, management or a group of private investors Privately held companies do not have stock traded on the stock market

Ticker Symbols An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly AAPL – Apple Inc. MSFT – Microsoft PEP – Pepsi Co. GOOG – Google Inc.

Parent Companies http://www.huffingtonpost.com/2012/04/27/consumer-brands-owned-ten-companies-graphic_n_1458812.html

Parent Companies So looking at the above chart. Pepsi is the parent company of Lays P&G is the parent company of Lams This is important to know when researching stocks. If you are interested in a company and cant find it on Yahoo finance or Hoovers then you should look up the parent company.

PE ratio Compares the price per share to the earnings per share So in basic terms it shows you how long it will take you to earn your money back! Mainly used to compare competitor stocks EX: Pepsi to Coke

Stock industries Click on the profile button on the left of the screen Why is this important? Because you want to be diversified You don’t want a lot of stocks in the same industry

52 week high and low How many weeks in a year? This is a measure of the stocks past performance throughout last year This will tell you if the stock is priced high or low.