REVIEW POWER POINT FOR STOCK MARKET PROJECT TEST

This represents ownership in a corporation. Stock

This is the simplest type of business organization and has one owner. Sole Proprietorship

This business organization has at least two or more partners who reach agreement on responsibilities and ownership. Partnership

This type of business organization creates a separate legal entity and then issue share certificates (“stock”) to show who owns how many shares of the business. Corporation

In order to obtain money and grow, corporations often sell ___________. Stock

This type of stock generally gives one vote at shareholder meetings for every share owned. These stock holders may also be entitled to receive distributions of the companies provides, called “dividend payments.” Common Stock

This type of stock generally does not have voting rights, and usually not traded on an exchange. However, if a company decides it is going to pay dividends, these stock holders may get a bigger share, and be paid before other stock holders and are also entitled to be paid first if a company goes bankrupt and all the assets are sold off. Preferred Stock

When you buy this, you are buying a piece of ownership of a company. A stock

When you buy this, you are loaning money to a corporation and will be paid back with interest. A bond

This is when a company sells stock for the first time. IPO or Initial Public Offering

If you want to maximize your personal net worth, if you want to be “rich”, if you want to be a “millionaire”, if you want to retire early–you cannot just put money into a savings account at a bank, you must invest in ________. Stocks

This means to make sure pick a variety of stocks in different industries in order to limit your exposure to losses in the stock market. Diversify

Sector Diversification This type of diversification in stocks involves splitting your investments across companies based on the type of business they do. Sector Diversification

Stock Diversification This type of diversification in stocks involves making sure you don’t put too much money in any one stock. Stock Diversification

Before deciding to invest, you need to identify what your _______ are. Goals

Invest in what you know” strategy This trading strategy involves buying stocks for corporations which you understand what the company does. Invest in what you know” strategy

This trading strategy involves investing in companies that have high earnings announcements coming up which will drive their stock price up. Earnings Strategy

This trading strategy involves buying stock investments that are already diversified for you and will track a specific market for you. The Passive Strategy

Stock Screeners Strategy This is a is a trading strategy based on a program or website that will ask you some questions about what you are looking for in a stock, and return a list of stocks that match your criteria. Stock Screeners Strategy

This is this site in New York City that is the site of the New York Stock Exchange or NYSE. Wall Street

This is the largest stock exchange in the world. New York Stock Exchange or NYSE