1. JA Take Stock In Your Future
Session Two

2. Objectives Read online stock tickers and tables
Understand what factors are involved when you’ve decided the type of investment that is best for you
Understand what information needs to be analyzed to help decide which investments are right for you
Define the difference and benefits of buy-and-hold investing and active trading
Play a mini simulation of the Stock Market Challenge

3. Review
What is the difference between sole proprietorship, partnership, and corporation?
Why would a private corporation choose to become public?
What is one way the stock price is determined?
What are dividends?
What is a shareholder?
How could you reduce risk if you are an investor?
Why might you want to increase risk?
How do you buy stock? Explain where/when/why.
What is a bull market? Bear market?

4. Activity Big Burger Company only has stores in Colorado.
They want to expand to Arizona and build at least five new locations. It will take $1 million to build each new location, so they issue $5 million in stock.
Each share of stock will be sold at a starting price of $100, so the company will issue 50,000 shares.
The company has done research that indicates their new stores in AZ will be successful since those demographics match those of their current customers in CO.
What additional information would you like before you choose to invest your money?

5. Stock Tickers and Tables

6. Stock Tables
A stock table contains basic information on the changes in the stock market for a day
Information in a stock table includes:
Abbreviation of company name (example: Allstate = ALL)
Year high and low for that particular stock
How many much trade volume has changed hands for that company within the day
The highest and lowest prices paid for that stock during the day
The day’s closing price and its difference from yesterday’s closing price
Dividend on the stock

7. How to Read Stock Tables

9. Apple (sample)

10. Apple vs. Google

11. The JA Stock Market Challenge

12. Active & Buy-and-Hold Trading
Frequent trading - actively buying and selling
The investor watches the market trends and makes constant, fast decisions about what and when to buy and sell.
When is this a good strategy?
Buy-and-hold trading
The investor purchases stocks or funds but does not constantly monitor their progress.

13. Mini Stock Simulation Game
Axel Group (AXG) Price $10.00
EastCoast Paper Corp. (ECP) Price $5.00
Johnson Gold Resources (JGR) Price $2.00
Theal Corp (TLC) Price $35.00
Zappa Foods Co. (ZPC) Price $25.00
LET THE TRADING BEGIN: CHOOSE WHERE TO SPEND YOUR $10K

14. Axel Group (AXG) Price $25.00 Zappa Foods Co. (ZPC) Price $10.00
Day 30
Axel Group (AXG) Price $25.00
EastCoast Paper Corp. (ECP) Price $3.00
Johnson Gold Resources (JGR) Price $12.00
Theal Corp (TLC) Price $37.00
Zappa Foods Co. (ZPC) Price $10.00

15. Axel Group (AXG) Price $15.00 Zappa Foods Co. (ZPC) Price $5.00
Day 60
Axel Group (AXG) Price $15.00
EastCoast Paper Corp. (ECP) Price $5.00
Johnson Gold Resources (JGR) Price $25.00
Theal Corp (TLC) Price $40.00
Zappa Foods Co. (ZPC) Price $5.00

16. What will you do with $500,000? 60 seconds = 1 day
Press releases and hot tips throughout
Floor traders will help you buy and sell
There are 26 different stocks!
Your team must submit stock pick info:
Stock Name
Symbol
Number of shares
Total Dollars Invested in this Stock

17. Summary of Basic Terms

18. Terms to Know
Bear Market: A bear market occurs when more people want to sell stocks than buy them, causing stock prices to fall.
Brokerage Commission: Brokers (agents for potential buyers and sellers) charge a fee for each transaction they make on your behalf. You are charged this fee in addition to the price of the stock.
Bull Market: A bull market occurs when more people want to buy stocks than sell them, causing stock prices to rise.

19. Terms to Know (cont’d)
Common Stock: Stock that may pay dividends as determined by the corporation’s board of directors. Common stock holders can vote for members of the board.
Dividend: The part of corporate profits distributed to stockholders (generally dispersed quarterly.)
Dow Jones Industrial Average: While not a true average, it is a price weighted average, not a measure of the average price. It is an index that shows how the select top 30 publically owned companies have traded during a standard trading session. Broad market averages designed to tell you how companies traded on the stock market are doing in general.
Equity: Ownership in a company.

20. Terms to Know (cont’d)
Market/Marketplace: A place where buyers and sellers meet.
Preferred Stock: As opposed to “common stock,” preferred stock has certain privileges. Owners are the first to receive dividends and the first to receive a share of the assets if the corporation is liquidated. The dividend is a constant amount.
Prospectus: a statement of financial information that contains details on its objectives, investment, strategies, risks, performances, distribution policy, fees and expenses and fund management.

21. Terms to Know (cont’d)
Retained Earnings: Profit (minus taxes), not paid as dividends but instead retained by the business to be reinvested in the business.
Securities: Stocks, bonds or other investment vehicles.
Stock: Shares in the ownership of a corporation.
Stock Exchange: An organized marketplace where securities are bought and sold.
Stock Broker: A person in a firm who is authorized to trade at the exchange.
Stock Market: 1) Where buyers and sellers of stock meet; 2) an arrangement, rather than a physical place, that allows people to exchange stock.
Stockholder: The owner of stock in a corporation.