1. GI Beginners’ Series: Class II November 15, 2007

2. Class I Review Exponential Nature of Growth Concept of a Stock  Represents ownership  Investor: Access to dividends and future earnings  Company: Access to more capital What Make Stocks Move  Company-specific  General market-movers

3. Class I Review Market Structure  Exchanges, Sectors, Industry Groups  Indices Terminology  Market Sentiment  Types of Positions  Stock Classifications

4. Supply-Demand Influence on Prices

6. General Dynamic  Supply increases or Demand decreases Price decreases  Supply decreases or Demand increases Price increases Stock Dynamic  More buyers than sellers Price increases  More sellers than buyers Price decreases

7. Buying/Selling Pressure Stock Price Increase  Buyer’s (Bull) Market  Implies optimism Stock Price Decrease  Seller’s (Bear) Market  Implies pessimism Strength of Increase or Decrease  Day’s Volume vs. Average Daily Volume

8. Reading Stock Quote Why Bother  Quick snapshot  Pertinent information without excessive research Components  Last Trade, Change, Bid, Ask  Open, Close  High, Low  Market Cap  Volume, Average Volume

9. Price-to-Earnings Ratio How much, per $ of earnings, investors are willing to pay for each share P/E Ratio  Based on latest earnings report Forward P/E Ratio  Based on forecasted earnings

10. Price-to-Earnings Ratio Implications Growth Stock  High P/E Ratio Forward P/E > P/E  Lower earnings forecasted Forward P/E < P/E  Higher earnings forecasted

11. Reading Stock Quote Free websites:  www.finance.yahoo.com www.finance.yahoo.com  www.finance.google.com www.finance.google.com

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14. Class 3: November 29 Fundamental Analysis Market Forces  GDP, Oil, Inflation  Beta Executing Trades Online