– Stock Market Portfolio, Mutual
Funds, CD’s…
Pay attention, take notes and ask
questions…how much can you make?
Industries
• Name some different types of business’s• What type of service does it provide?
• E.g…travel, entertainment, transportation,
energy, insurance, banking,
pharmaceuticals (drugs)…
Industries…cont!
NIKE – CLOTHING
PEPSI – BEVERAGE
HOME DEPOT –
CONSUMERABLES
GENERAL MOTORSAUTOMOBILES
MICROSOFT –
COMPUTER
SOFTWARE
APPLE- COMPUTER
HARDWARE
EXAMPLE –e.g…
• 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.
1 share = 20 cents –
thousands of dollars.
You can buy any amount of
shares the company offers.
10 shares at 10.00$ each=
100.00 invested!
Example on the web!
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.
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 Major U.S. Markets
• NYSE – New York
Stock Exchange
• Wall street / New
York!
• http://finance.yahoo.com/
• NASDAQ - National
Association of Securities
Dealers Automated
Quotations
• Brought about because the
NYSE was getting too
large
• Mostly comprised of
technology stocks eg.
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)
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