Slide 15A
Walk’n on
Wall Street
Lesson 15
Slide 15B
What Does That Mean?
Term
Definition
portfolio
a collection of investments.
stock quote
the price of one share of a stock.
institutional investor
organizations that pool sums of money from many
members to invest in securities.
mutual fund
a professionally managed investment fund made up of a
large pool of money received from many investors.
Slide 15C
What Does That Mean?
Term
Definition
earnings per share
EPS; the approximate amount of a company’s profit allocated
per single share in the company.
price-earnings
ratio
P/E Ratio; the ratio of a company's current share price
compared to its earnings per share.
rally
a period of sustained increases in the prices of stocks or bonds
usually following a period of flat or declining prices.
trend
a general direction of a market or security over time.
Slide 15D
What Does That Mean?
Term
Definition
downgrade
a negative change in the rating of a security
upgrade
a positive change in the rating of a security
market cap
the number of a company’s shares outstanding multiplied
by the current share value.
yield
the cash return on an investment, expressed as a percentage
of the current market value.
net change
abbreviated net chg; difference in dollars between the
closing price of a security and the previous day’s closing
price.
Slide 15E
Reminder
 Remember to visit
http://c21student.com/flashc
ards/
to access the online flashcards!
Slide 15F
Lesson 15 Objectives
 Compare an institutional and individual
investor.
 Interpret technical data in a stock table.
 List ten fundamentals of stock
valuation.
 Compare the G8, G7, and G20.
Slide 15G
What does this stock table tell you about
HnnH stock? What do all those numbers,
symbols, abbreviations, arrow, and technical
information mean?
Slide 15H

A
 52 W Hi/ Lo -shows volatility & trends

B
 Stock = name of the company

C
 Tkr = symbol -assigned by exchange

D
 Dividend
Slide 15I
E
 Yld -cash return expressed as % of
F
current price
 EPS –company’s earnings divided
by number of shares
G
 P/E -share price divided by EPS
H
 Vol -number of shares traded
Slide 15J
I
 Hi / Lo -comparison of share price
J
 Close = final price of the day
K
 Net chg = difference in dollars from
L
 Market cap (small, mid, large) –share
from prior day
the prior day’s close
price multiplied by total number of shares
outstanding
Slide 15K
Another method to analyze
value: Fun with Fundamentals
 Provide a deeper, analytical view with
such things as company reports
(especially earnings reports)
 Business plan, forecast and earnings
reports
 Management strengths and strategies
 Pending products
 Industry and sector growth
Slide 15L
Downgrades and Upgrades
 Ratings, ratings, ratings
 Common stock ratings: strong buy, buy,
hold, sell, or outperform or underperform
 Bonds = AAA down to D
 Ratings are upgraded or downgraded
depending on the company’s
performance, problems, or negative
events
Slide 15M
The Big Picture
An institutional investor is a professionally managed fund that
pools and invests members’ money. Many factors go into
analyzing a stock for value. Technical data is provided in a
stock table. Stock tables look complicated but are actually easy
to read, and are full of important information for comparing
stock values. Stock fundamentals are also indicators of value.
They include economic forecasts, earnings reports, annual
reports, sector and industry growth outlook, management
strengths and weaknesses, and a company’s pending products.
The investment quality of stocks and bonds is professionally
rated. To be financially literate in the 21st century you should
understand basic stock valuation methods, and that stock
markets are powerful engines driving the economy, as well as
avenues to building personal wealth.
Slide 15N
Ponder and Predict
 One of President John F. Kennedy ‘s
favorite sayings was
A rising tide lifts all boats...
 Is this a metaphor for the stock market?
Some people think it is. What do you
think?