1. Stock Market Basics

2. Amazon and Walmart are two of the largest retailers in the world today
Amazon and Walmart are two of the largest retailers in the world today. While both started out as a small business owned by one person, today they are large corporations owned by many investors.
How is this possible?

3. Corporation:
A specific legal form of business that has a board of directors and shareholders. Businesses of all sizes can be incorporated.
Board of Directors:
A group of people selected by the shareholders to provide oversight to a corporation.
Shareholders:
Individuals who own “shares” or “stocks” in a corporation.

4. What are Stocks? How can someone buy shares in a company?
If the company is publicly-owned- stock is bought and sold through stock markets.
Privately-owned stock is bought and sold by the company itself.
Stock is ownership in a publicly traded company.
Stock is a claim on the company’s assets and earnings.
The more stock you have, the greater your claim as an owner.
What are Stocks?

5. Types of Stock Common Stock – most common form of stock.
One vote per share
Dividends (profits) are not guaranteed
Major risk to lose everything/ gain nothing
Preferred Stock
Fixed dividend
May not include voting
Functions similarly to bonds
Types of Stock

6. You want to start buying stocks, where do you start?
Bought and sold in markets called stock exchanges.
Primary Markets – where stocks are created
Secondary Markets – investors trade previously issued stocks
The Stock Market
Companies are not involved in the buying and selling of their stock.
You want to start buying stocks, where do you start?

7. The Exchanges Stocks are Bought and Sold- Most Common
New York Stock Exchange (NYSE)
American Stock Exchange (AMEX)
NASDAQ
The Exchanges

8. A collection of stocks—representative of the stock market
Dow Jones – 30 most significant stocks in the stock market
S&P 500 – 500 largest companies on the US stock market
NASDAQ Composite – all stocks on the NASDAQ
The Indices (index)

9. Two primary sources of information about stocks:
Stock Tables
Usually published after the close of the markets.
Stock Quotes (Tickers)
Provide stock quotes in “real-time” while the markets are open.

13. Research! Stocks Groups of two. Research ASSIGNED stock.
Advanced Micro Devices
Apple
Ford
General Electric
Facebook
GoPro
Microsoft
Fitbit
Snap
Bank of America
Tesla
Twitter
Nvidia
Alibaba
Amazon
Netflix
Micron Technology
Square
Disney
Chesapeake Energy
Research!
Groups of two.
Research ASSIGNED stock.
Prepare a TWO MINUTE informational presentation- focus on investing, why or why not?
Your presentation can include one slide with information on it.

14. What Causes Stock Prices to Change?
Supply and Demand
Earnings and Expectations
Sentiments and Attitudes
Economic Indicators
Follow the Leader (volume)
Anything
What Causes Stock Prices to Change?

15. Where do I Start? Learn the Basics Set Up a brokerage account
Full-service vs. discount?
The Internet provides a variety of discount brokerage firms (do it yourself)
Fees, commission, minimum balance
Keep it simple as you learn
Learn about other investment vehicles
Where do I Start?