WHAT IS THE STOCK MARKET -place where stocks are bought are traded WHAT IS A STOCK TRADER? -someone who buys and sells stocks WHAT IS A STOCK? -unit of

WHAT IS THE STOCK MARKET

-place where stocks are bought are traded

WHAT IS A STOCK TRADER?-someone who buys and sells stocks

WHAT IS A STOCK?-unit of ownership in a company

WHY DO COMPANIES SELL STOCK?-research better ways to make things-create new products-improve products they already have-hire more employees-enlarge their buildings

IN OTHER WORDS…..-to make money


HOW DO YOU MAKE MONEY IN THE STOCK MARKET?1. become a shareholder (buy a stock)2. # of shares x price per share3. the value of the stock increases

HOW DO YOU LOSE MONEY IN THE STOCK MARKET?1.Repeat steps #1 and #22.the value of the stock decreases


WAYS TO INVEST YOUR MONEY

1. CERTIFICATE OF DEPOSIT2. MONEY MARKET ACCOUNTS3. US BONDS4. MUTUAL FUNDS5. STOCKS6. COLLECTIBLES


MUST ALWAYS THINK ABOUT THREE (3) FACTORS BEFORE YOU INVEST….

1.SAFETYhow risky is it2. LIQUIDITY

Easily turned in to cashCan you pull out of the investment easily

3. RETURN ON THE INVESTMENT-earning potential/how much money can you make


WAYS TO INVEST YOUR MONEY-STOCKS-THE DOW (DOW JONES INDUSTRIAL AVERAGE)-tracks 30 of most largest public companies on the market

EXAMPLESCoca Cola (K0)Johnson & Johnson (JNJ)McDonald’s (MCD)Microsoft (MSFT)American Express (AXP)General Motors (GM)Wal-Mart Stores (WMT)Disney (DIS)


WAYS TO INVEST YOUR MONEYSTOCKS

SAFETY-you are on your own-can either rise or fallLIQUIDITY-can sell it at any time-sold at what it is worth for the moment

RETURN (DIVIDENDS)-payment made to stockholder to share profits

SPLITTING-WHAT HAPPENS WHEN SHARES COST TO MUCH?-stock price reduces-increase in amount of shares each stockholder owns



STOCKSWORKSHEET AND VIDEO


WAYS TO INVEST YOUR MONEYSTOCKS

52-WEEK HI/LOW-for most recent 52-week period-indicator of how the stock is doing (problems/bargain)

SYMBOLS-language of investing

VOLUME-how many shares traded that day

P/E RATIO-price per earnings -determines if expensive or good value-how much profit you can make for each share

WHAT IS THE STOCK MARKETWAYS TO INVEST YOUR MONEY

CERTIFICATE OF DEPOSIT (CD)-called a “CD” because the bank gives you a CERTIFICATE telling you:1.The amount you deposited2.The interest rate being paid3.How long the money must be in your account-money is deposited in a bank (FDIC)-cannot take it out when you want it—must wait-the longer you wait, the longer you earn money

WHAT IS THE STOCK MARKETWAYS TO INVEST YOUR MONEY

COLLECTIBLES-the items you buy and hope they will be worth something someday1.Baseball cards2.Art3.Wine4.Furniture-no guarantee people will buy it-no guarantee it will increase in value-may not be able to get money back if you want it-long-term investment



MUTUAL FUNDS-combination of the money of many investors to buy a lot of investments-chosen by a professional—they know what they are doing-avoids risk of investing in a single stock-can easily buy or sell shares-no guarantee-must pay an extra fee



U.S BONDS-lending money to the federal government-used during World War II to raise money for the war-backed by the federal government-money tied up for years-long range investing-low-risk; interest rates are lower

Documents

WHAT IS THE STOCK MARKET -place where stocks are bought are traded WHAT IS A STOCK TRADER? -someone who buys and sells stocks WHAT IS A STOCK? -unit of