Stock Market
Game
Current Events
Introduction to Stock Market
 Common Vocabulary
 Stock Exchange – Place where publicly held companies are bought and
sold
 Nasdaq – an index based on stock prices of over 5000 companies
traded on the market. Transactions take place on a virtual market
place.
 Dow Jones Industrial – An index based on the stock prices of 30
actively traded large companies. This is the oldest and most widely
followed index of stock market performance.
 S&P 500 – An index based on the stock prices of the largest 500 firms
traded on the New York Stock Exchange.
Common Vocabulary
 Public Company – A company owned by investors who buy
shares of stock. Shares of the company sold through one of the
stock exchanges.
 Private Company– Company that is owned by a person, family,
or group and does not sell shares to public on stock market.
 Interest– A Fee charged to use another’s money or credit.
 Simple- Interest calculated at regular intervals on principal
only.
 Compound – Interest calculated at regular intervals on
principal and interest added previously.
Stocks/Bonds/Mutual Funds
 Stocks– Ownership of shares in a business.
 Common – shares do not guarantee dividend, higher risk – higher
returns, includes voting power at annual meetings
 Preferred – ownership that guarantees dividend if it occurs, is less
risk with no voting rights.
 Shares – A unit of ownership purchased in a corporation or Mutual Fund.
 Dividends – part of the company earnings that pays as money to
stockholders.
 Bonds– When a company or the government needs to borrow money
they sell bonds. Typically sold in certain increments, with a stated
interest and maturity (life/term length )
 Mutual Funds– company that sells stock in itself and uses the money to
buy stocks and bonds issued by other companies. (Benefits include –
large variety of investments with smaller risk)
Risks
 Risk – the chance of losing part or all of an investment.
 Conservative – Preferred Stock
 Moderate – Growing companies
 Beta Number– A calculation that helps measure the level
of risk ( higher than 1 provided higher risk and higher
earnings potential)
 Volatility – indicates how quickly the value changes
 P/E Ratio – Price to earnings ratio- calculated by dividing
the current price per share by current earnings per share.
Retirement & Savings
 401 K –Retirement savings funded by employee contributions
often matched by employer. Tax free until money is withdrawn.
 IRA’s – (Individual Retirement Accounts) –Long term, tax
sheltered deposits that are set up as a retirement plan- has
amount limitations ($3000 per year for tax sheltering benefits)
 Money Market – Special savings account where money is loaned
for less than 1 year – usually issued by financial institutions.
 Certificate of Deposits – (CD’s)Special form of deposit offered by
banks that generally pays compound interest for a fixed period
of time.
Other Basic Information
 Bull Market – Period during which stock market prices move up
for several months or years in a row.
 Bear Market – Period during which stock market prices move
down for several months or years in a row.
 IPO – Initial sale of stock to public by investment bankers.
 Yield – Rate of the return of an investment paid in dividends or
interest expressed as a percent
 Savings bonds – low-denominations savings bonds sold by the
government purchased at a discount and can take up to 18
years to mature at full price
READING STOCK MARKET TABLE
 Before investing in stocks, you will need to understand some
basic tools. One tool is the stock market table.

 The stock market tables gives you basic information and price
history for stocks. You can use it to see how stocks you own or
are interested in owning are performing, how their prices are
changing, and how they have performed in the past. Reading a
stock market table is simple once you understand how to do it.

Here is a sample line from a stock market
table for the stock of General Electric:
Stock Market Table
 You may find stock market tables in many different
places. One place to look is in the financial section or your
local newspaper, or in a financial publication such as the
Wall Street Journal.

 The internet makes looking up stock table information
even easier by using such sites as Yahoo Finance. With
Yahoo Finance, simple type in the stock ticker (if you don't
know it first search for it by looking it up with the
company's name).
Stock Market Table Assignment

1. (3)What was the total number of shares of Edison International sold on this day? _______________

2. (3)What is the last trade price of the day for Sabre Holding Corp Cl A ? _______________

3. (3)Which company's stock traded the most shares today? _______________

4. (3)Is Hewlett-Packard Co 's stock now worth more or less than yesterday's close?_______________

5. (3)What is the difference between the high and low for Hewlett-Packard Co stock? _______________

6. (3)What is the difference between the high and low for St Jude Medical Inc stock? _______________

7. (3)What is the change in price for the day for Hewlett-Packard Co ? _______________

8. (3)What is the stock ticker symbol of Intl Flavors & Fragrance ? _______________

9. (3)What is the Low of the day for Qlogic Corp ? _______________

10. (3)What is the high of the day for Qlogic Corp ? _______________
Reading Stock Table Key
ANSWERS

1. 2,539,400

2. 17.87

3. Sabre Holding Corp Cl A

4. Less

5. 1.75

6. 4.71

7. -1.44

8. IFF

9. 37.83

10. 39.43
BUYING STOCKS
Buying Stocks Answers
 1. $160.00
 2. $102.00
 3. $279.00
 4. $80.00
 5. $324.00
 6. $460.00
How Many Shares?
$100,000
STOCK MARKET CHALLENGE

Congratulations!
You have been left $100,000 by your long, long, long, long,
long, long lost Uncle Chester, who unfortunately recently
passed away. However, it seems that Uncle Chester left several
stipulations for you to be able to inherit this money.
The regulations are as follows:
-You must invest the entire gift in the stock market
-You must purchase at least 5 different stocks
-YOU MUST INVEST AT LEAST 15% OF THE MONEY IN EACH
STOCK OWNED
Why your stocks performed the
way they did
 Minimum two paragraphs, at least five sentences, for each
stock
 Explain why your stocks performed the way they did
 What outside factors caused your stocks to gain or lose?
 How has the market performed over the course of the
challenge?