1. BLU #15: Stocks! Nike Stock – 10 years
How much was each share of Nike in 2001? How much does each share cost today?

2. Stocks, the basics
Public corporations sells stocks, shares, of their company to raise capital
Buy stocks through a broker, someone licensed to buy them
Stocks are sold in a stock exchange
NYSE
Nasdaq

3. Buying stocks Risky! Stocks can lose value Stock prices change b/c of:
Company performance
Changes in economy
Job growth or loss
Other events
Japanese tsunami caused stock mkt to drop!
Sell stocks for more than you purchased, you make a profit, called capital gains (taxed!)
Stock Market History

4. Buying Stocks
Long term strategy: stocks may go & down (a lot!) but over the long term (many years) the stock market goes up!

5. Dow Jones – 1 week

6. Companies in Dow Jones
AT&T, Caterpillar, Exxon, Chevron, Cisco, Coke, etc
Total of 30 companies
Index Fund / Mutual funds: a select group of companies SO instead of buying 1 stock (very risky) you diversify (buy many types) which lessens the risk

7. Would you put your money in a savings account or stocks? Why?

8. 1. 5 shares of Nike stock @ $30 per share = $150
Picking your stocks….
1. 5 shares of Nike $30 per share = $150