BLU #15: Stocks! Nike Stock – 10 years How much was each share of Nike in 2001? How much does each share cost today?

Stocks, the basics Public corporations sells stocks, shares, of their company to raise capital Buy stocks through a broker, someone licensed to buy them Stocks are sold in a stock exchange NYSE Nasdaq

Buying stocks Risky! Stocks can lose value Stock prices change b/c of: Company performance Changes in economy Job growth or loss Other events Japanese tsunami caused stock mkt to drop! Sell stocks for more than you purchased, you make a profit, called capital gains (taxed!) Stock Market History

Buying Stocks Long term strategy: stocks may go & down (a lot!) but over the long term (many years) the stock market goes up!

Dow Jones – 1 week

Companies in Dow Jones AT&T, Caterpillar, Exxon, Chevron, Cisco, Coke, etc Total of 30 companies Index Fund / Mutual funds: a select group of companies SO instead of buying 1 stock (very risky) you diversify (buy many types) which lessens the risk

Would you put your money in a savings account or stocks? Why?

1. 5 shares of Nike stock @ $30 per share = $150 Picking your stocks…. 1. 5 shares of Nike stock @ $30 per share = $150