Intro to Stocks and the Market
What is a Stock? A share of ownership in a corporation. Hold stock = shareholder Can buy shares at a price. Can sell shares also at a price. Money in hand vs. Money on paper
Corporation? Company that sells stock! This IS a legal definition.
WHERE Do I Buy Stocks? NYSE (Dow Jones)…”Wall Street” NASDAQ…tech / new Foreign markets
HOW do I Buy Stocks? Need to be 18 Go to a broker Online E-Trade
WHEN Can I Buy? NYSE 9:30 am to 4:00 pm Eastern Time! On-Line Pretty much anytime!
Does Every Company Offer Stock? No! Some are “private” Reasons to “go public” Called the IPO (Initial Public Offering) Raise money Continue profits Share profits!
A Good Idea?
Terms to Know Company Name Ticker Symbol Share Price Range
HOW Do I Make Money? 1) Through dividends Some companies pay shareholders a percentage of their profits. 2) Sell your stock Difference between money in hand OR money on paper.
Examples… Ticker Symbol # of shares$ when bought Total Investments$ when sold+/-- AAPL100 SBUX100 GOOG100
Apple – 1 Day
Apple - 5 Years
Starbucks – 1 Day
Starbucks – 10 Years
Google – 1 Day
Google – Entire History
Halliburton – Oil and Construction
Boeing - Airlines
American International Group (AIG)
Enron
Stock Portfolio The collection of stocks you own. Portfolio make up will depend on your goals… Retirement Make extra money Pay for college …and your age. Close to retirement? How old are the kids?
Eggs? All eggs in one basket? Why or why not? Diversification! Spreading your money around!