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Get out your business plan from yesterday…
Write out a list of the reasons why you believe your business will be immensely successful In order to get your business off the ground, you need some starting out money. You will need to convince the person sitting in front/behind you to invest in your company using the list you just made to persuade them.
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Stock Market Basics
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Shares/Stock Pieces of ownership in a company
What type of business are we talking about? Corporations! Why would a company sell off ownership to other people? Raise money! (Starting out $, expansion $, etc) Why would people want to buy shares? Want part ownership of a company (voting rights) Hope to make money (as an investment) Demonstration…..
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Party Time
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Making Money Dividends Selling shares
Parts of a company’s profits given to shareholders Selling shares Sell your parts of ownership to another investor for a price higher than what you paid
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Stock Prices High demand for shares = prices go up
Means there is a lot of people wanting to buy that stock Low demand for shares = prices go down Means there is a lot of people wanting to sell that stock LOTS of things impact the demand for shares Company earnings Expectations of future performance Changes in the company
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Strategies Video…..
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Strategies Buy low, sell high Invest in what you know
Use the 52 week (year) range and charts to get an idea of what’s low and what’s high for a stock price Yahoo! Finance is a great site to use Invest in what you know Stick with companies you are familiar with or have done your research on Don’t let your emotions make your decisions Stock values fluctuate ALL THE TIME! Don’t make snap decisions based on one day’s changes
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Quick Review What are you really buying when you purchase shares?
Parts of ownership in the company Why do companies sell shares of their company? To raise money What is a big factor in determining the value of stocks? Demand for the stocks
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