“Investing is like gambling, but with better research.”

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Presentation transcript:

“Investing is like gambling, but with better research.”

Dot-2-dot - An Introduction to the stock market Let’s start with cars… How did Henry Ford build his car empire? Who are investors? Why would people invest??? To make $$$$!!

Who Owns McDonald’s? Who is really winning with all of those Big Macs?!?!

Let’s Start at the Beginning… The first McDonald’s opened in 1940 in California It was owned by Dick and Mac McDonald It began issuing “stock” in 1965 for $15 per “share”

Key Terms Stock - a term to describe “ownership” of a company Share - the number of parts of a company that you own. When you own shares in a company you are called a “shareholder” For example: I own “stock” in McDonald’s. I own 10 shares that I bought for $50 per share. How much did I pay? Dividend - money paid to shareholders when a company makes a profit.

If I had invested in McDonald’s… On May 28, 2004, the price of one “share” in McDonald’s was worth $ How much would I have paid for 10 shares? $264 for 10 shares On May 29, 2004, the price of one share in McDonald’s was $ How much did I earn on my original investment? My shares are now worth $594.80, so I earned $330.80!

So how do we find information on stocks? Stocks are bought and sold (known as “trading”) on the Stock Market The Stock Market is exactly what it says - it’s a “store” or market where you buy stocks! We are going to use Google Finance to research our stocks for our project