1. Make a list of 5 products that you think are great and will be money makers for the company that produces them. Try to guess what company makes the product.

2.  The Kraft Heinz Company  What other brands do they own?  http://finance.yahoo.com/q?s=KHC&ql=0 http://finance.yahoo.com/q?s=KHC&ql=0

3. Definitions Brand Name – The popular name of a product. Parent Company – A business that owns and controls another company. Subsidiary – A business that is owned by another company. What other companies do you know that own other companies?

5.  http://www.pepsico.com/Brands/BrandExplo rer http://www.pepsico.com/Brands/BrandExplo rer  http://finance.yahoo.com/q?s=PEP http://finance.yahoo.com/q?s=PEP

6.  Create a chart on Excel with the following  Brand Name  Company Name  Parent of subsidiary of what company  If your brands turn out to have the same company name pick another brand.

7. Ownership of shares in a business

8. Definitions Opportunity Cost  The second best alternative of a choice. This is the opportunity given up by making a particular choice. (opportunity given up)  I am giving up the opportunity to spend my money now by investing in the market Scarcity  Insufficient resources to meet everyone’s needs  Fewer shares of stock available, higher price  I have limited resources to expend

9.  When you buy a stock you become part owner of a public company – no matter how many shares you own.  Stocks are sold in lots of 100 shares or more  If the stock price exceeds what you paid for it, your investment increases in value.  If the stock price goes lower than what you paid for it, your investment decreases in value.  You risk ONLY the money you invest.

10.  If a company’s product or service is in great demand, demand may exceed the ability of banks to provide money for the company’s expansion.  At that point company leaders may decide to “go public.”  This means they “offer” the stock to the “public” through an exchange  Example: NY Stock Exchange or NASDAQ

11.  Company management go to investment bankers to negotiate an agreement to underwrite (back, guarantee, finance) a stock offering know as an IPO.  The investment bankers buy all the shares that will be offered to the public at a set price (primary market).  In other words, they underwrite the IPO. The investment bankers then sell the stock to the general public (secondary market) in the hopes of making a profit.  In addition to finding underwriters, company management must register its stock with the Securities and Exchange Commission (SEC).  http://www.investopedia.com/video/play/public- company/ http://www.investopedia.com/video/play/public- company/

12.  Dividends are payments made by a company to its shareholders  When a company earns a profit, that money can be put to two uses: it can either be re- invested in the business, or it can be paid to the shareholders as a dividend  A dividend increases your “rate of return”  Many corporations retain a portion of their earnings and pay the remainder as a dividend

13.  Companies can offer two types of stock, Common and Preferred.

14.  Most basic form of ownership  One vote per share owned to determine company’s Board of Directors  Events that can affect stock price  The dollar value increases or decreases through supply and demand of buyers and sellers  Stock split occurs – shares owned by existing stockholders are divided into a larger number of shares  A merger of two companies Can be viewed favorably or unfavorably  Dividends are paid, making the company more desirable to hold for investors

19.  Preferred stock – shares which pay fixed dividends and have priority over common stock  Less risk than common stock  No voting rights  Dividends are stated as a percentage known as the par value Fixed value stated on the stock certificate

21.  An important difference between common stock and preferred stock is that the price of the preferred stock tends to be more stable, changing little over time, than that of common stock.  Preferred stock is less risky than common stock, therefore investors can expect less reward.

22.  Private companies shares are not for sale the general public.  Mars Corp, the snack food giant, is privately held.  Google, was privately held until 2005, when it went public, offering its stock for sale.

25.  New York Stock Exchange (NYSE)  http://www.investopedia.com/video/play/n ew-york-stock-exchange-nyse/ http://www.investopedia.com/video/play/n ew-york-stock-exchange-nyse/  Parent Company EuroNext (Germany)  National Association of Securities Dealers Automated Quotation (NASDAQ)  http://www.investopedia.com/terms/n/nasd aq.asp http://www.investopedia.com/terms/n/nasd aq.asp

26.  Located along Wall Street in Manhattan  It caters to well-established companies like IBM, Ford, and McDonald’s  https://www.nyse.com/get-started https://www.nyse.com/get-started http://www.thestreet.com/story/13277966/1/key -energy-services-receives-notice-from-nyse- regarding-continued-listing-requirements.html

27.  The Dow Jones (“The Dow”) (NYSE)  Gauges the performance of the industrial sector of the American Stock Market  The average consists of 30 of the largest and most widely held public companies in the United States  Standard & Poor's 500 (S & P 500) (NYSE)  Gauges the performance of 500 Large Corporations, all of which are from the United States