1. STOCKS and MUTUAL FUNDS WHAT YOU SHOULD KNOW

2. What are stocks? Shares of ownership of a company If a company has 100 shares outstanding and you own 10 shares, you own 10% of the company

3. How do people make money off of stocks? As a shareholder, you may be entitled to dividends –Sharing company profits with shareholders the price of the stock goes up –“Buy Low, Sell High”

4. Why Stocks? Traditionally they are the highest returning investment Since 1926, about 12% a year Since 1987, they’ve exploded

5. THE STOCK MARKET - A PRETTY GOOD HISTORY

6. STOCK EXCHANGES Are places where stocks are sold Common stock exchanges are the –NASDAQ (National Association of Securities Dealers Automated Quotation System) –NYSE (You guess...) –AMEX

9. SOME BIG WINNERS... STOCKFROM INGAIN Jupiter National$3 1/2 to $271991-93671% Mid-Atlantic Medical Services$2 3/8 to $271991-941,078% Linear Technology$2 1/8 to $381989-951,688% Micron Technology$3 to $951992-953,066% Fastenal$7/8 to $381987-954,242%

10. SOME TYPES OF STOCK GROWTH STOCKS –Any stock that has a good chance of growing faster than the market BLUE-CHIP STOCKS –Companies with good financial records that are pretty safe investments (Coca-Cola, GE, Disney are Blue Chip Stocks)

11. SOME TYPES OF STOCK Income Stocks –Pay high dividends, but don’t grow much Cyclical Stocks –Do real well in a good economy, but bad in a bad economy(automotive, airlines, etc) Defensive Stocks –Recession proof stocks (food, beverage, tobacco)

12. SOME TYPES OF STOCK Speculative Stocks –Big gambles –Risky but could be good

13. THE DOW “HOW’S THE MARKET DOING?” The DJIA is the Dow Jones Industrial Average commonly referred to as the Dow An average of only 30 of the big stocks (blue-chips) Together they represent the U.S. economy as a whole.

14. THE DOW IS MADE UP OF...

15. OTHER INDEXES INCLUDE S & P 500 NYSE INDEX NASDAQ INDEX RUSSELL 2000 WILSHIRE 5000

16. Make Sure You Know... What is the DJIA? What are Exchanges? What is the S & P 500? What are blue-chip stocks? What are dividends?