1. Learning Outcomes, basic understanding of: Raising capital Types of Investment Types of Shares Canadian Stock Exchanges Kinds of Stocks Stock Market Language

2.  Two ways to raise money for business expansion: 1. Debt financing  Borrow money from financial institution 2. Equity financing  Have people invest in your company  Issue shares

3. 1. Money to expand 2. Go public 3. Sell shares to investment firms 4. Firms sell to investors 5. Traded on stock exchange 6. Diverse owners of stocks participate in free enterprise system.

4.  Two methods of investment: 1. Bonds  A certificate issued by a company to an individual or another company acknowledging that it owes a certain amount of money  Many loan agreements and many creditors 2. Shares  Unit of ownership in a company

5.  2 Types of shares: 1. Preferred Shares Paying out a fixed dividend each year Paid regardless of whether or not the company makes a profit 2. Common Shares Receive a dividend only if the company makes a profit and if the company decides to payout

6.  5 stock exchanges in Canada: 1. Toronto Stock Exchange (TSE) 2. Montreal Exchange (ME) 3. Alberta Stock Exchange (ASE) 4. Vancouver Stock Exchange (VSE) 5. Winnipeg Stock Exchange (WSE) Buying and Selling of shares that are available for trade on a daily basis.

7. Blue-chip stocks ~ made up of common shares of well- established companies Venture capital stocks ~ stocks of fairly new small to medium-sized companies Risk of Investment ~ consider the potential profit, while understanding the risk

8. Stock exchange’s share price index ~ quick and easy way to see if the general market trend is increasing or decreasing Buy low-sell high ~practice of buying a stock when it is inexpensive and selling it when it has risen in price

9. Bull market ~ most of the prices on the stock market are rising Bear market ~ most of the prices on the stock market are falling

10. Bid ~ highest price that anyone is willing to pay to buy a stock Ask ~ lowest price that anyone will accept to sell a stock Portfolio ~ different stocks that an investor has chosen to purchase