What is an IPO. Why did Facebook issue and sell stock

Slides:



Advertisements
Similar presentations
Date: January 31, 2011 Topic: The Stock Market Aim: How does the stock market function? Do Now: What do you like to buy in the market?
Advertisements

Copyright © 2011 Pearson Prentice Hall. All rights reserved. Firms and the Financial Market Chapter 2.
STOCK MARKET How it Works.
Chapter 14 - Raising Capital in the Financial Markets.
Investing in your future. What is INVESTORS OF TOMORROW? Investors of Tomorrow strives for excellence in fulfilling the mandate of providing financial.
Stock Investing Basics Important Terminology Related to Stock Investing.
11/17/2009.  Corporations sell a share of stocks to raise $ to fund their operations Just like bonds Loan  When you purchase a share you are purchasing.
Key Terms from the World of Finance. Key Terms AMEX – Stands for American Stock Exchange. Located in New York City, this stock exchange sells memberships,
1 Chapter 12 – Securities Markets Where financial assets are traded Primary market – First time a security sold –Initial Public Offering (IPO's) Secondary.
Chapter 9 Section 9.3 – Buying and Selling Stock.
The Stock Market. What is Stock? Stock represents ownership in a company. Buying stock is an investment in the company. The stock market is a medium for.
Vicentiu Covrig 1 Securities Markets (chapter 4).
Financial Literacy. Why Learn About Stocks  The stock market is the core of America’s economic system Stock is a share of ownership in the assets and.
Buying Stock: Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.
 Goals:  Describe ways to purchase different types of stock.  Explain differences between investing in corporate stocks and corporate bonds.
Stock as an Investment.  Capital Appreciation: stock may become more valuable and the holder can buy low and sell high  Dividend: investor gets a share.
Ch. 2 - The Financial Markets and Interest Rates  2000, Prentice Hall, Inc.
Ch Rising Capital in The Financial Markets  2002, Prentice Hall, Inc.
Stock as an Investment.  Capital Appreciation- stock may become more valuable and the holder can buy low and sell high  Dividend- investor gets a share.
Chapter 12 Sec. 3 Investing in Equities, Futures, and Options.
Investing Continued.  A stock is a share of a stock  It entitles the buyer to a certain part of the future profits and assets of a corporation selling.
Chapter 11 Section 3 – The Stock Market. Buying Stock Stock or Equities – Represents ownership in a company Issued in portions called shares – Help corporations.
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Securities Markets CHAPTER 3.
Stock Market Introduction to the Stock Market. What is a stock? Partial ownership in a business – Dividends = Profits paid out to stock holders four times.
Exchange Characteristics. What is the New York Stock Exchange? The New York Stock Exchange (NYSE) lists over 2,500 companies. It is where the stocks that.
Stock Market What is a Stock? A claim on the assets of a corporation that gives the purchaser a share in the corporation Ownership.
What is an Exchange? Before You Invest. Markets In The Stock Market Game, students buy and sell stocks and mutual funds listed on the three major US stock.
NYSE vs. NASDAQ By Hilary Everist and Jessica Sandoval.
The Stock Market. What is Stock? Stock is a paper certificate proving partial ownership of a company.
Chapter 18 – Common Markets
P604, Pay debts 2. Raise money  Ex. To expand business.
INVESTING BASICS. A. THE STOCK MARKET STOCKS- UNIT OF OWNERSHIP IN A CORPORATION. STOCKS EXPLAINED.
BINGO!. Please fill in the board with the following Brand Name Parent Company Subsidiary Opportunity Cost Private companies IPO Public Companies Dividends.
Bell Ringer If you could own stock in any company, which one would it be? Why?
4/30/14 “Stock prices” Of the companies you researched: 1.Which had the highest trading price & what was it? 2.Which had the lowest trading price & what.
Aim: How are stocks and bonds sold to the public?.
Stock is Ownership in a company Think about this…. Wal-Mart began as a single-store business in Arkansas Apple computers began when founders Steve Jobs.
Chapter 9 Section 3 Stocks, Bonds, and Futures Bw6FyPf34.
How do Stock Markets Work?. Stocks involve more RISK than Bonds.
Financial Markets Chapter 11 Section 3 The Stock Market.
CPUSH 23 February 2015 To Do: -Bring textbook all week! -Research Paper 4 Pages: 3/4 EQ: What is the stock market and how can I invest wisely? Agenda:
Chapter 11: Financial Markets Section 3: Buying and Selling Stocks pgs
The Stock Market Ch
Chapter 18 Financing and Investing Through Securities Markets
Investment Management
Stock Purchases.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Stock Market Basics.
Stock Features and Markets
Basic Questions about the Stock Market
What is a Stock Market?.
Class 3. Organization and Structure of Markets
Investing: Taking Risks With Your Savings
Bell Question How might institutions (such as banks/credit unions) help individuals accomplish their financial goals?
Institutions & Derivative Instruments
Financial Algebra 20 April 2018.
6.7 Stocks If a corporation needs to make money, they will often borrow it by selling bonds. They promise to repay the borrowed money back plus interest.
Warm Up What does it mean when a person has stock in a company?
Securities Markets Chapter 4
Motivation Do you know of any stock exchanges?.
The Language of the Stock Market
Institutions & Derivative Instruments
What is a Stock Market?.
Objectives Primary market Secondary Market
Stock Market Trading Hours Finasko.com. NYSE Trading Schedule Trading Days – Monday to Friday Opening Time – 9:30 a.m. Eastern Standard Time Closing Time.
Institutions & Derivative Instruments
How the stock market works
Stocks: The Basics.
The magical place where stocks are bought and sold.
Institutions & Derivative Instruments
Presentation transcript:

Video Clip http://www.google.com/finance?q=FB&ei=gbgsUcCQOYyu0AHreg What is an IPO? Why did Facebook issue and sell stock? (respond in 3 to 5 lines) Video Clip http://www.google.com/finance?q=FB&ei=gbgsUcCQOYyu0AHreg

The Stock Market Essential Questions: Why do corporations issue and sell stocks? How do stock exchanges facilitate the buying and selling of stocks?

Presented by the New York Stock Exchange “What Makes Us Tick” (1952) Presented by the New York Stock Exchange Video

Google Inc. raised $1.67 Billion 19,605,052 shares sold Aug 19, 2004 IPO of $85/share Google Inc. raised $1.67 Billion http://www.google.com/finance?q=NASDAQ%3AGOOG#

A stock exchange brings buyers and sellers of stock together A stock broker buys and sells stocks on behalf of his/her clients How is a stock sold on the open market?

The New York Stock Exchange (NYSE) The world’s largest stock exchange (based on market capitalization of listed companies) Trading takes place Monday through Friday Opening Bell at 9:30 a.m., Closing Bell at 4:00 p.m. The stocks of over 3,000 companies are listed/traded Approximately 1,400 “seats” which are purchased by brokerage firms (Merrill Lynch, Legg Mason, Morgan Stanley, etc.) who buy & sell on behalf of their clients Was purchased by InterContinentalExchange (ICE) in 2012 for $8.2 billion http://www.nyse.com/ NYSE Stock Brokers Video Clip: NYSE Floor Video Clip:

NASDAQ (National Association of Securities Dealers Automated Quotations) The largest electronic screen-based securities trading market in the United States Approximately 3,700 companies listed Generally, lists newer “technology” stocks when compared to the NYSE (Microsoft, Google, Facebook, Intel, etc.) Market Hours from 9:30 a.m. to 4:00 p.m. http://www.nasdaq.com/

The Stock Market Summarizer: Explain the importance of stocks in a capitalist system. Respond in 4 to 6 lines