1. Stocks 2

2. Buying and Selling  Takes place on stock exchanges  By computer  Public must use licensed broker or online service  Largest Exchanges  New York Stock Exchange (NYSE)  Nasdaq  Tokyo Stock Exchange  London Stock Exchange  Shanghai Stock Exchange

3. Understanding the news…  Indexes  Track certain stocks to give an idea of the overall market  Dow Jones Industrial Average: Weighted average of 30 stocks on NYSE & NASDAQ  Apple, Boeing, Coke, Disney, Nike, IBM, Walmart  S&P 500: 500 stocks chosen from different sectors  Autozone, Best Buy, Facebook, ebay, Kohl’s  NASDAQ Composite: all the companies on the NASDAQ  Activision, Google, Comcast, Starbucks  Other indexes by region, country, industry, size,……

4. Bulls and Bears  Bull Market: Positive, growing, going up, “buy”  Bear Market: Negative, shrinking, going down, “sell”

5. Classifying Stocks  By Industry  By Size  Small Cap (<$2 billion Angie’s List, Papa John’s)  Mid Cap ($2-10 billion Cabela’s, Wolverine)  Large Cap ($10 billion+ Apple, Coke)  By “Type”  Growth: Company believed to be growing, bright future  Value: Stock believed to be underpriced, lower than it should be worth