BELL RINGER  Draw a rough approximation of what a value stock will look like over the course of a 100 years.  Have value in dollars be your y-axis and time in years be your x-axis

Bear – downward trend Bull – upward trend Stock Market 1900-Today

1950S VIDEO Key Takeaways?

STOCK MARKET INDEX  A means to track the prices in a market or section of a market  #1 Dow Jones - 30 Companies that represent that overall progress of the market

#2 INDEX: 2 S& P 500  500 largest companies having common stock on either the NYSE or NASDAQ

WOULD YOU RATHER CHOOSE YOUR OWN STOCKS OR FOLLOW AN INDEX?

STOCK MARKET  Stock Market – a generic term that encompasses the trading of securities  Top 3 Stock exchanges in the U.S. 1. New York Stock Exchange (NYSE) – strictest stock exchange 2. American Stock Exchange (AMEX) – off Wall Street; less stringent which attracts smaller companies 3. National Association of Securities Dealers Automated Quotation System (NASDAQ) – no physical location

AMEX: A TIMELINE  1800s – Founded as “Curb Exchange” because met on corner of Broad St. and Exchange Place  1921 – New headquarters founded on Trinity St.  1998 – Merged with NYSE

NASDAQ: A BRIEF HISTORY  Create as first electronic stock market  2000 – became a for-profit company  2007 – Merged with the NYSE  Today – largest electronic stock market with over 3,000 companies

STOCK VIDEO 1. What is greater, the number of stocks traded each year or all goods and services traded each year? 2. How are shares and companies like pizza? 3. Why must share holders act quickly? 4. What is the DAX analogous to in the United States?

MUTUAL FUNDS  Mutual fund – a pool of money collected from investors to be invested in stocks, bonds, and other assets

WHAT WOULD YOU PUT IN A MUTUAL FUND? Scenario: You make 10% profits off your initial investment. How much does each person make?

PORTFOLIOS  Small-Cap – small and risky companies; valued at $300 million to $2 billion  Mid-Cap –medium sized companies that have experienced some growth and are continuing to expand; between $2 and $10 billion  Large-Cap – well established, safe companies; over $10 billion

TYPES OF MUTUAL FUNDS 1. Equity – investments mostly in stocks 2. Fixed Income – invests primarily in bonds 3. Asset allocation/balanced – a mixture of stocks and bonds

EXIT TICKET  Which type of stock in a mutual fund is the most risky? Why?