By: Bradley Sarasin

Stock – An Overview Companies will sometimes issue stock as a way of raising money By purchasing stock, investors become entitled to a share of that company’s assets

Four Largest Stock Exchanges by Market Cap: 1.NYSE Euronext (New York) 2.NASDAQ OMX (New York) 3.Tokyo Stock Exchange 4.London Stock Exchange Stock Exchanges Two types – Physical (NYSE) – Electronic (NASDAQ)

Trading Stocks Investors can make money by buying or selling stocks. Most investing is facilitated through brokerage firms act as a ‘middle man’ between the investor and the exchange. InvestorBroker Floor Broker (Exchange) Investor notifies broker that they would like to buy/sell a specific stock Broker notifies floor broker at the stock exchange to buy/sell this stock Floor broker goes to the company (on the trading floor) that specializes in this stock, and purchases the requested amount.

Choosing a Stock to Purchase Stock prices fluctuate based on the current market. depending on the supply and demand of the specific stock, the price will go up or down. Investors use different strategies to chose stocks, and when to buy and sell them. Bull MarketBear Market

New York Stock ExchangeNASDAQ Stock Exchange the largest stock exchange in the world many “blue chip” companies (like Wal-Mart and Coca Cola) are traded on the NYSE the second largest stock exchange entirely electronic

Stock Market Indexes Used to measure the performance of a segment of the stock market. Comprised of different publicly traded companies and will show a general trend of the current market. Two types national - can be used to gauge a country’s economy global - not restricted to a specific area.

The Dow Jones Industrial Average (DJIA) is an index of thirty large corporations based in the United States. It is often used as a ‘barometer’ of the American economy. 3M Alcoa Altria Group American Express American Int’l AT&T Boeing Caterpillar Citigroup Coca-Cola Dupont Exxon Mobil General Electric General Motors Hewlett-Packard Home Depot Honeywell IBM Intel J&J JPMorgan McDonald’s Merck Microsoft Pfizer P&G United Tech Verizon Wal-Mart Walt Disney The Dow Jones