Identifying Symbols and Interpreting Stock Quotes Before You Invest List Five Products You Have Purchased Lately: 1. 2. 3. 4. 5. Would you consider buying stock in the companies that make these products? Why? or Why not? Ticker Symbols Ticker symbols are what stock exchanges use to identify listed companies. Typically, companies listed on the New York Stock Exchange (NYSE) have one to three letters in their ticker symbols. The NASDAQ Stock Market and American Stock Exchange identify companies and funds with symbols that maybe as long as five letters. Ticker Symbols Which of the following symbols do you think belongs to Coca Cola Company? CCLAY CCLAF KO KOF CCHOF CCH CCHBF COKE CCE Ticker Symbol Tip Symbols with more than four letters are usually foreign stocks –that eliminates; CCLAY, CCLAF, CCHOF, CCHBF. KO is the ticker symbol for the Coca Cola Company. Ticker Symbols Company Name Ford Motor Company Gap, Inc. Yahoo Incorporated Foot Locker, Inc. Abercrombie & Fitch What do you think the ticker symbol is? What is the real ticker symbol? Parent Companies & Subsidiaries Banana Republic and Old Navy are subsidiaries of the Gap. While they have their own brands and identities, they are owned by the Gap. Frito Lay and Gatorade are both owned by Pepsi. Parent Companies & Subsidiaries Have you ever heard of Yum! Brands, Inc.? Go to www.yum.com and list what brands are familiar to you? 1. 2. 3. 4. 5. ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ Parent Companies & Subsidiaries So, if I want to invest in Pizza Hut, what ticker symbol would I use? How much is it trading for right now? What is the volume? What is the 52 week high? What is the 52 week low? Interpreting Stock Prices Based on this five-day graph of Pfizer, would you consider this stock a good investment? Interpreting Stock Prices Based on this fiveyear graph of Pfizer, would you consider this stock a good investment? Vocabulary Dividend: Part of a company’s profits (earnings) paid periodically to stockholders. P/E Ratio: Stands for price-to-earnings ratio. The P/E is the relationship between a company's earnings and its share price. It is calculated by dividing the current price per share by the earnings per share. Share: A share is a unit of ownership in a corporation or mutual fund. Vocabulary Stock: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Volume: The number of shares traded in a company's stock. Unusual market activity, either higher or lower than average, is typically the result of some external event.