The New York Stock Exchange

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 The nation’s principal stock exchange is the New York Stock Exchange’s Dow Jones Industrial Average (“the Dow”), which tries to measure the overall economic and political health of the nation by measuring 30 of the nation’s leading companies (Microsoft, General Electric, Exxon, Wal-Mart…). These companies change based on changing economic conditions and priorities.  The NASDAQ is also a closely-watched benchmark index of mostly leading technology companies.

 Historic High: 14,164 (2007)  Great Depression Low: (1932)  Current: 10,380

 What is a stock?  A share/part in the ownership of a company. The more shares you have in a company, the more ownership of the company you have.  Companies sell stock to raise capital (money for growth).  As a shareholder, you are entitled to your share of the company’s earnings, assets, and voting rights (such as voting for the company’s Board of Directors). For example, if you own 200 shares of a company, which is 1.2% of the total shares of that company, you entitled to 1.2% of the company’s profits and have 1.2% of the votes.  Why do stock prices move on a daily basis?  Generally: If more people want to buy a stock (demand) than sell it (supply), then the price moves up. If more people want to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

 A company’s market capitalization is what the company is literally worth at any given time.  Market Cap = (Number of Shares) x (Current Stock Price)  For Example: Microsoft ▪ (8.76 billion shares) x ($28.21) = $247 billion  Therefore, just because Google’s stock price is $ does not mean that it is worth more than Microsoft.  The “worth” of a company is often based on how investors feel about it.  Daily good/bad news can move a stock price (e.g., increased quarterly profits or losses, a recall of a product, the announcement of a new product).  A stock’s price may also reflect the growth that investors expect in the future.

 Stock Symbol: identifier on the stock exchange  MSFT  Stock Price: the price investors are willing to pay for a share  $28.21  Volume: how many shares traded hands (daily and average)  Daily: 173,718,024  Average: 66,730,000  52-Week Range: a gauge of current stock performance 

 Use the chart function to measure long- or short-term performance, and to compare the stock with the overall market’s performance.

 Check out company-specific news headlines to understand possible reasons for daily stock performance.

 Sources of Federal Revenue:  The fed. govt. collects corporate taxes (on profits) as follows:

 BUT…most corps. pay NO taxes because of various loopholes in the tax code.

The New York Stock Exchange

 The nation’s principal stock exchange is the New York Stock Exchange’s Dow Jones Industrial Average (“_________”), which tries to measure the overall economic ___________ health of the nation by measuring 30 of the nation’s leading companies (Microsoft, General Electric, Exxon, Wal-Mart…). These companies change based on changing economic conditions and priorities.  The ________ is also a closely-watched benchmark index of mostly leading _____________ companies.

 Historic High: 14,164 (2007)  Great Depression Low: (1932)  Current: 10,380 (May 10, 2010)

 What is a stock?  A share/part in the ____________________. The more shares you have in a company, the more ownership of the company you have.  Companies sell stock to raise ______________________________.  As a shareholder, you are entitled to your share of the company’s ___________________________________ (such as voting for the company’s Board of Directors). For example, if you own 200 shares of a company, which is 1.2% of the total shares of that company, you entitled to 1.2% of the company’s profits and have 1.2% of the votes.  Why do stock prices move on a daily basis?  Generally: If more people want to buy a stock (_______) than sell it (______), then the price moves up. If more people want to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

 A company’s ___________________________ is what the company is literally worth at any given time.  Market Cap = (Number of Shares) x (Current Stock Price)  For Example: Microsoft ▪ ________________________________________________  Therefore, just because Google’s stock price is $ does not mean that it is worth more than Microsoft.  The “worth” of a company is often based on how investors feel about it.  Daily good/bad news can move a stock price (e.g., increased quarterly profits or losses, _____________________, the announcement of a new product).  A stock’s price may also reflect the growth that investors expect in the future.

 Stock Symbol: identifier on the stock exchange  _________  Stock Price: the price investors are willing to pay for a share  _________  Volume: how many shares traded hands (daily and average)  Daily: __________________  Average: _______________  52-Week Range: a gauge of current stock performance  ___________________

 Use the chart function to measure long- or short-term performance, and to compare the stock with the overall market’s performance.

 Check out company-specific news headlines to understand possible reasons for daily stock performance.

 _________________________:  The fed. govt. collects corporate taxes (on profits) as follows:

 BUT…most corps. pay NO taxes because of various __________ in the tax code.