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“Investing is like gambling, but with better research.”

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Presentation on theme: "“Investing is like gambling, but with better research.”"— Presentation transcript:

1 “Investing is like gambling, but with better research.”

2 Dot-2-dot - An Introduction to the stock market Let’s start with cars… How did Henry Ford build his car empire? Who are investors? Why would people invest??? To make $$$$!!

3 Who Owns McDonald’s? Who is really winning with all of those Big Macs?!?!

4 Let’s Start at the Beginning… The first McDonald’s opened in 1940 in California It was owned by Dick and Mac McDonald It began issuing “stock” in 1965 for $15 per “share”

5 Key Terms Stock - a term to describe “ownership” of a company Share - the number of parts of a company that you own. When you own shares in a company you are called a “shareholder” For example: I own “stock” in McDonald’s. I own 10 shares that I bought for $50 per share. How much did I pay? Dividend - money paid to shareholders when a company makes a profit.

6 If I had invested in McDonald’s… On May 28, 2004, the price of one “share” in McDonald’s was worth $26.40. How much would I have paid for 10 shares? $264 for 10 shares On May 29, 2004, the price of one share in McDonald’s was $59.48. How much did I earn on my original investment? My shares are now worth $594.80, so I earned $330.80!

7 So how do we find information on stocks? Stocks are bought and sold (known as “trading”) on the Stock Market The Stock Market is exactly what it says - it’s a “store” or market where you buy stocks! We are going to use Google Finance to research our stocks for our project


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