Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 17 The Stock Market.

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Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 17 The Stock Market

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. The Value of Outstanding Shares of Domestically Issued Stock since 1982 (End of Year) *Through second quarter SOURCE: Flow of Funds of the United States, Z1, Board of Governors of the Federal Reserve System, various issues * Year $1, , , , , , , , , , , , , , , , , , , ,863.3* Corporate Equities

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. The Returns to Stocks and Bonds over Time A rETURN TO STOCKS IS MEASURED BY THE Standard and Poor’s 500 Composite Index and includes reinvestment of dividends. b Return to bonds is measured by Moody’s AAA Rated Corporate Bond Index and includes reinvestment of interest. c Through September 28, SOURCE: Global Financial Data, Los Angeles, California. Value of $100 invested in bonds in 1969 b Value of $100 invested in stocks in 1969 a c Year $5,000 4,000 3,000 2,000 1,000 0

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Net Non-U.S. Purchases of U.S. Stocks U.S. Dollars, in Billions *Annualized through second quarter SOURCE: Flow of Funds of the United States, Z1, Board of the Federal Reserve System, September 18, 2001, page '95'96'97'98'99'00'01*

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. The Ten Largest Companies (Measure by Market Value) Traded on the Big Board, July 2001 Ten Largest NYSE-Listed Companies JULY 2001 Company Name General Electric Co. Exxon Mobil Corp. Pfizer Inc Citigroup Inc Wal-Mart Stores American International Group AOL Time Warner Inc Intl Business Machines Corp Johnson & Johnson Merck& Co Symbol Ge XOM PFE C WMT AIG AOL IBM JNJ MRK Market Cap ($bil.) NYSE Average Daily Volume 20, ,958,637 13,242,718 11,257,568 7,428,327 4,849,423 13,078,036 7,748,647 8,183,296 6,710,387 Market Cap ($bil.) SOURCE:

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. The Companies that Make Up the Dow as of August 31, 2001 Alcoa American Express AT&T Boeing Caterpillar Citigroup Inc. Coca-Cola DuPont Eastman Kodak Exxon Mobil Corp. General Electric Co. General Motors Corp. Hewlett-Packard Co. Home Depot Honeywell International Inc. IBM Intel Corp. International Paper J. P. Morgan Chase & Co. Johnson & Johnson McDonald’s Corp. Merck & Co. Microsoft Corp. Minn. Mining & Manufacturing Philip Morris Cos. Procter & Gamble Co. SBC Communications United Technologies Corp. Wal-Mart Walt Disney

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. The Value of the DJIA, S&P 500, NYSE Composite, and NASDAQ since 1985 Stock Market Indices (End of Period) * 1, , , , , , , , , , , , , , , , , Dow Jones Industrial Average , , , , S&P NYSE Composite , , , , , , , NASDAQ Composite As of November 2, SOURCE: Global Financial Data, Los Angeles, California

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. Daily Average of Stock Market Volume and Values Traded since * NYSE AMEX , ,542.0 NASDAQ NYSE NASDAQ As of July SOURCE: Securities Industry Association Stock Market Volume (Daily Avg., Mils. of Shs.) Value Traded (Daily Avg., $ Bils.)