1. How does your retirement look?
Think back to your bucket list and the goals that you have for years down the road….How are you going to get to be able to cross 1 or more of the items off the list?
If you do not have anything on your bucket list for that far in the future think about that now…30-40 years down the road what do you want to do? How will you get there?

2. Stock Market Basics

3. Why should I think about investing?
Assume you saved $1400 a month for 26 years. This would leave you with $403,200 to live on, which on a $60,000 a year lifestyle would only last you 6.72 years. You’re retiring at 65 only to go broke at 71 and you’ve been a good saver all your life.
Again, lets say you saved $1400 a month for 26 years. BUT, this money was invested continuously as part of a long term investment plan. If you were to average a 10% annual return on these investments. The same $1400 a month compounded annually at 10% turns your net worth into $2,017,670.19 in 26 years! But the story gets even better. With this large sum of money at your retirement, again conservatively assuming a 3% yield on your dividends (It means a 3% return on the value of the stock. If a stock has a $10 share price, the dividend would be $0.30), you can collect $60,530 a year to live on WITHOUT reducing your saved amount.

4. Investing $10,000 2005 1. Starbucks $12.05 2. Google $197.40
3. McDonalds $31.60
4. Disney $27.81
5. Mobil $51.02
6. Yahoo $33.72
7. Apple $64.78
Close Yesterday
1. Starbucks $55.30
2. Google $802.84
3. McDonalds $116.17
4. Disney $94.09
5. Mobil $89.05
6. Yahoo $44.36
7. Apple $105.52
7-for-1 stock split: On June 6, 2014, Apple shares closed at $ apiece

5. What are stocks?
A stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings.
As an owner (shareholder), you are entitled to your share of the company’s earnings as well as any voting rights attached to the stock.

6. Why do companies issue stock?
At some point every company needs to raise money. Companies can either borrow it from somebody or raise it by selling part of the company.
By issuing stock, the company does not have to pay back the money or make interest payments.

7. Shareholder
Owners of a corporation also known as shareholder
Legally separate from the corporation. Generally not liable for the debts of the corporation

8. What does the shareholder
get out of the deal?
The shareholder gets the hope that the shares will be worth more in the future.
If the company does well, the stock will probably increase in value. If the company does not do well, the shareholder may lose the money he or she invested.

9. Corporation #1 in sales Berkshire Hathaway #1 Assests
A type of business ownership arrangement in which the business is considered an entity under the law, and owners are called shareholders
#1 in sales
Berkshire Hathaway
#1 in Profits & Market Value
#1 Assests

10. Market Cap
Market capitalization refers the total dollar market value of a company's outstanding shares.
277B
376B
580B
449B

11. Market Cap
Market capitalization is simply the total number of shares outstanding multiplied by the current price for a single share. A company with 2.5 million shares outstanding and a stock price of $50 per share would have a market cap of $125 million.
Companies with a market cap of less than $2 billion are considered small-cap. Companies with a market cap of $2 billion to $10 billion are medium-cap, and anything larger than $10 billion is considered large-cap.

12. What’s an IPO?
IPO stands for Initial Public Offering. It’s the first time the stock is available to the public to purchase.
The stock exchange itself is a secondary market. The primary market is the brokers.

13. What is a dividend?
A dividend is money that a company pays to its stockholders from the profits it makes.
Not all companies pay dividends to their stockholders. The only way shareholders in these companies make money is to sell the stock at a higher amount than they bought it at on the open market.

14. What is the difference between
common and preferred stocks?
Common stock is the type most people purchase. It represents ownership of a company and a claim on part of the profits. Investors get one vote per stock.
Preferred stocks don’t have the same voting rights, but investors are usually guaranteed a fixed dividend. If the company is liquidated, they are paid off first.

15. How do stocks trade?
Most stocks are traded on exchanges such as the New York Stock Exchange or NASDAQ. The NYSE is a physical location whereas NASDAQ is a virtual market.
Exchanges are simply places where
buyers and sellers meet and decide on a price
for a stock. Think of it as a flea market where
buyers and sellers come together and agree on
a price for a product.

16. The New York Stock Exchange
On the NYSE, orders come in through brokerage firms and flow down to the floor brokers who go to a specific spot on the floor where the stock trades.
At this spot, there is a ‘specialist’ whose job is to
match buyers and sellers. Prices are determined by
the auction method. The current price is the
highest price someone will pay and the lowest price
someone is willing to sell for.

17. The NASDAQ Exchange
NASDAQ is a virtual market called an “over the counter (OTC) market. It has no central location or floor brokers. Trading is done through a computer and telecommunications network of dealers.
These market makers provide continuous bids and
ask prices within a prescribed percentage spread for
shares for which they are designated to make a
market. They usually maintain an inventory of shares
to meet demands of investors.

18. Is the United States the only
country with stock exchanges?
Absolutely not. Many countries have stock markets.
The two other main financial hubs are the London
Stock Exchange and the Hong Kong Stock
Exchange.

19. What sets the prices on a
stock exchange?
Market forces changes stock prices every day. Share prices change because of supply and demand.
If more people want to buy a stock (demand) than
sell it (supply) the price goes up. If more people
want to sell than buy, the price goes down.

20. What makes people want to buy
one stock and not another?
The price of a stock indicates what investors feel a company is worth.
The most important factor that affects the value of a
company is its earnings. Earnings are the profit a
company makes. Public companies must report their
earnings on a quarterly basis. If a company has done
well, the stock price will likely rise. If not, it will
drop.

21. What else might influence
the price of a stock?
Often times current world events have an impact on the price of stocks.
For example, after 9/11, aviation stocks decreased in
value. This was in anticipation of a drop in traveling
by the consumer and thus a decrease in profits.
This caused a lot of trouble for those companies.

22. What about all these animals?
The Bull – a bull market is when the economy is doing well, the GDP is growing and stock prices are rising. The bull market charges ahead.
The Bear – a bear market is when the economy is bad,
recession is looming and stock prices are falling.
A bear market hibernates and moves slowly.

23. What about all these animals?
The Chickens – chickens are afraid to lose anything. They invest in safe things like bonds or mutual funds.
The Pigs – pigs are high-risk investors. They want to
make a killing in a short time. Unfortunately, they are
usually led to the slaughter.

24. In Review
Stock means ownership.
You can lose all of your investment with stocks.
The two main types of stocks are common and preferred.
Stock markets are places where buyers and sellers come together.
Stock prices change according to supply and demand.
Bulls make money. Bears make money. Chickens sit on money. Pigs just get slaughtered! .

25. Shark Tank .