1. Introduction to Stocks
Part I of the Stock Market Project
DESA 6th Grade Pre-AP
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2. What is a stock (share)?
A stock (also known as a share) is part of an ownership of a corporation.
Investors can purchase shares in a corporation.
A shareholder is a person who owns stock in a corporation.
Shares are traded (bought or sold) through stock exchanges. The NYSE (New York Stock Exchange) and NASDAQ are two well-known exchanges.
The price of stock can rise or fall over the course of each trading day.

3. How do people choose stocks?
In the past, trading stocks was reserved for institutions (such as government retirement plans) and wealthy people.
Some people choose stocks for their retirement (so they have money when they stop working).
Although some people choose stocks for short-term gains (such as day-traders), stocks are considered a long-term investment.

4. Basic Stock Market Terms
Close: the price for one share when the trading day ends.
Gain: the amount the price of one share increases over a period of time (can be expressed in a percent).
Loss: the amount the price of one share decreases over a period of time (can be expressed in a percent).
Open: the price for one share when the trading day begins.
Price: the cost to trade one share (not including fees).
Range: the lowest and highest price of a stock over a certain period of time (for example, 52 weeks).
Stock (Ticker) Symbol: A unique set of letters that identify corporations on stock exchanges.
Volume: the amount of shares traded during the trading day.
**There are many other stock market terms, but these are the basic terms needed to complete the project.

5. Part I: Choosing Your Stocks
You have received a prize that allows you to purchase 100 shares of two corporations!
You can choose any two corporations.
The corporations must be a part of U.S. Stock Exchanges (i.e., AMEX, NYSE, NASDAQ).
You must explain why you chose each stock. Use two reasons to support your choices.

6. Assignment One: A List of Ten
Think about 10 things you like. For example, many kids like Facebook, Twitter, and athletic shoes.
Look for the company’s website and online reviews. How is the company doing?
We won’t look for the stock symbols yet. All you need to do is choose 10 companies or things. We will narrow your list to two choices in class.

7. Sample: List of Ten Visa Ross Stores Macy’s Netflix Twitter Google
Barracuda Networks
Chipotle
Pie Five
Facebook

8. Questions?
me at