STOCK MARKET PROJECT ECONOMIC INDICATOR • An economic indicator is a measure of the health of our economy. Like a thermometer it tells if the economy is doing well or is not. DOW JONES INDUSTRIAL AVERAGE • The Dow Jones Industrial Average is a measure of the top stocks (30) on the stock market. It is one of the economic indicators of our economy. If it goes up, it is usually a positive indicator. If it goes down, it is usually a negative sign. ANOTHER EXAMPLE • March 12, 2009 CORPORATIONS • A corporation is a business that has it’s own identity. • A corporation can be a private corporation meaning it is owned by an individual or a group. This corporation does not sell stock. • A public corporation means you can buy a piece of the corporation. This piece of ownership is called a share of stock. The corporations do this to make money, etc HOW DOES STOCK GET IT’S VALUE • The value of a share of stock is determined by the financial health of the corporation, new innovations, and how the overall market and economy are doing. • The stock shares are bought and sold in the stock market. STOCK PROJECT • During this trimester you are going to buy shares of stock in one or two corporations (or a piece of ownership) • In class several times a week, we will go and look up the value of the stock. It will be your assignment to write down the prices (value) of your stock and keep track of your investments. STOCK MARKET PROJECT • You will invest $10,000 fake dollars. You must pick one or two stocks in the New York Stock Exchange (NYSE) to track. • At the end of the trimester you will be asked to turn in your tracking sheet, graph your stock and answer several questions on a worksheet. STOCK MARKET PROJECT • Example: Let’s say you want to buy Nike stock. It’s current price is $50 dollars a share. You decide to buy $10,000 dollars of the stock. You will divide 10,000 by $50 (or price per share) This means you would have purchased 200 shares. • Record you stock name, abbreviation, starting price (that you look up) and then determine how many shares you have. Please round the number of shares. • The next recording time will determine if your stock value on the market went up or down and if you made money or not.