P604,

1. Pay debts 2. Raise money  Ex. To expand business

 Buy 1 $30  Price rises to $50/sh.  You sell  Your profit = _____? ◦ $20  What if you’d initially purchased 100 shares? ◦ $2,000

1/25 th or 4% (2011= $6.2B)

Facebook: 2.8 billion shares / 2, 800, 000, 000

 Past century ( )  Stock Market rate of return = 6%/yr  Investment of $1,000 = ______ ? ◦ earn $60 at yr’s end (on average)  Current average return for savings account = 1%/yr  Investment of $1,000 = _______ ? ◦ earn $10 at yr’s end  GUARANTEED

Stock Purchaser Brokerage Firm Corporation $$ Stock

1. NYSE  The New York Stock Exchange  est. in 1792  Co.’s must meet size & profitability requirements to be traded on NYSE  Over 3,000 co.’s traded on NYSE

 NYSE PIT TRADING CLIP NEEDED

2. NASDAQ  National Association of Securities Dealers Automated Quotations  est  Mostly tech. stocks  No floor for trading  Over 5,300 co.’s traded on this market

3. AMEX  The American Stock Exchange  Est  originally known as NYCE (NY Curb Exchange)  700 co.’s traded on AMEX