1. Introduction to Stocks`
Introduction to Stocks
Basics of Investing I
K. Robinson

2. What is a stock? Common stock
Gives you a “share” of ownership of a publicly traded company
Stock ownership
Voting rights
Claim to assets (behind debt holders) and earnings

3. What is a stock? Ticker symbols
Set of letters that represent a security traded on an exchange
Ex. MSFT, GS, AAPL, MA, BUD, LUV
Stock quotes
List of prices for a stock at a particular point during the trading day
Stock tickers
What do those green and red numbers mean?

4. More Stock Quotes

5. Stocks vs. Bonds Stocks are equity Bonds are debt
Generally considered riskier
Quite possible to lose a significant portion, if not all, of your money
Potential for high returns
Bonds are debt
Lower and usually fixed return
Higher claim than stockholders
What does this mean?

6. What Can Cause Stock Prices to Change?
EASY!  Supply and Demand! But…what affects supply / demand of a stock?

7. What Can Cause Stock Prices to Change?
Earnings & growth expectations
Positive / negative news
Economy sentiment
Investor sentiments & attitudes

8. How Stocks Are Traded Major exchanges Only “publicly traded
Lists stocks (and other securities), sets policies for how stocks are traded
New York Stock Exchange (NYSE)
American Stock Exchange (AMEX)
National Association of Securities Dealers Automated Quotation
Only “publicly traded
companies” are listed

9. Markets Indices
S&P 500
500 stocks chosen by Standard & Poor to represent US stock market
NASDAQ Composite--With approximately 3,700 companies and corporations, it has more trading volume than any other stock exchange in the world, many of which are technology and electronics
Dow Jones Industrial Average
30 most significant stocks traded

10. Stocks Markets & Animals
Bull Market
When everything in the market is going great and stocks are generally heading upwards
Bear Market
When everything is NOT GOOD and stocks are generally headed downward
NOTE: Nothing lasts forever! Good times and bad times will end at some point

11. Brokerages
Need a medium to trade through – this is where brokerages come in
Criteria
Full service vs. discount
Fees (commission)
Services / tools
Minimum balance

12. Opening an Account
Not a hard process- most of it just some paperwork and mail
Sign-up online and download forms
Mail checks, forms, and copy of ID
Accounts created within a couple of days
What you will need: a computer, starting capital, and investing know-how

13. Basic Idea Behind Investing in Stocks
Buy your stocks when the prices are low.
Sell your stocks when the prices are high.