Stock Market
Pay attention, take notes and ask
questions…how much can you make?
Industries
Investment – Savings vehicle used for
retirement.
Examples – 401k, 403b, Roth IRA, Mutual
Funds, Stocks (equities), Money Market
• An industry is the type of business that the
company operates…(ex. Construction,
food services, energy, technology)
Portfolio- a collection of stocks or investments that
you have purchased.
• Diversify your portfolio – Invest in stocks
that are from different industries.
• “don’t put all your eggs in one basket”
Industries…cont!
NIKE – CLOTHING
PEPSI – BEVERAGE
HOME DEPOT –
CONSUMERABLES
GENERAL MOTORSAUTOMOBILES
MICROSOFT –
COMPUTER
SOFTWARE
APPLE- COMPUTER
HARDWARE
EXAMPLE –e.g…
• Share
– A piece of a
company
Example:
• You buy 100 shares of Nike
Stock at 50.00 per share!
• Total invested=5000$
• You hold the stock for 2
years, and sell the 100 shares
at 70.00!
• Total sale=7000$
• Investor makes 2000 dollars!
Ticker Symbol and
Share Price!
•
•
•
•
•
•
•
Nike – NKE
Pepsi – PEP
Home Depot – HD
General Motors - GM
Microsoft – MSFT
Apple – APPL
Why? To make it easier.
Abbreviations are much
easier to use.
Example on the web!
Share price can be very
high or very low.
You can buy as many
shares as you like.
Economic News – Good vs. Bad!
• If unemployment rate, inflation numbers,
and consumer confidence and spending
numbers are good = Usually means good
news for the Stock Market as a whole.
• If a single company like DELL reports high
quarterly earnings = usually means the
stock price will increase.
Practice:
• Create the chart below and complete it:
Stock
Buy
Price
Shares
Purchased
Nike
40.00
10
50.00
Facebook
80.00
20
77.00
Amazon
200.00
5
220.00
Delta
25.00
10
28.00
----------
---------------
---------
Total
TKR
Symbol
----------
Total
Invested
Sell
Price
Total
Gain/loss
FEAR vs. GREED
– BEAR Market
• Consumer Confidence
down
• Terrorist Attack
• Bad economic forecast
• Results in people pulling
their money
= lower the stock price
BULL Market
-Consumer Confidence
up!
-Economic Forecast
Good!
-Strong Economic
Numbers!
-Results in people putting
more money in = higher
TWO TYPES OF STOCK
• GROWTH STOCKS
– Cheaper share price
– Smaller companies
with lots of room to
grow
– RISKIER!
• VALUE STOCKS
– Big Companies
– Less risky
– Share price is more
expensive
– Less room to grow
Two Major U.S. Markets
• New York Stock
Exchange
• (NYSE)
• NASDAQ - National
Association of Securities
Dealers Automated
Quotations
• Brought about because the
NYSE was getting too
large
• Mostly comprised of
technology stocks ex.
MSFT (4 symbols)
Two Major Indexes
• DJIA – Dow Jones
Industrial Average
(comprises of 30 well
diversified companies)
• S&P 500 – Standard
and Poor’s 500
(comprises of 500 well
diversified companies)
There are other investments
besides the Stocks…
• Things that you should consider when you
get older and you begin saving for
retirement!
– 401 k (403b)
– IRA – individual retirement account
– Mutual Funds
– Life insurance
We are forced to pay into Social Security…but
don’t rely on it…you have to prepare that it
might not be available!
What Rules to Follow:
• Diversify your Portfolio
• Where can we research?
www.morningstar.com
• Find the best performing industries
• Within those industries, find the best
performing stocks
• E.g….Technology, MSFT!
Stock Market Project
• 7 parts / sections of
• Pay attention…take
the assignment
notes…and help each
other out!
• Each sections worth
25 points --- 175 +
• We will be going to
directions followed
the lab/library to
(25 pts) = 200 pts
complete some of the
possible!
project in class!
• Directions to follow
throughout the project!
Vocabulary Terminologies…
You need to define all of the following terms…IN YOUR OWN WORDS!
Complete Sentences!
•
•
•
•
•
•
•
•
•
•
Stock
Share
NYSE
Stock Split
NASDAQ
Diversify
S&P 500
Ticker Symbol
Bear Market
401 K
•
•
•
•
•
•
•
•
•
Bull Market
Capital Gain
DJIA
I.P.O – “initial public
offering”
Mutual Fund
Portfolio
S.E.C – “securities
exchange commission”
Stock Broker
Wall Street