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Intro to Stocks and the Market
What is a Stock?
A share of ownership in a corporation.Hold stock = shareholder
Can buy shares at a price. Can sell shares also at a price.
Money in hand vs. Money on paper
Corporation?
Company that sells stock!This IS a legal definition.
WHERE Do I Buy Stocks?
NYSE (Dow Jones)…”Wall Street”
NASDAQ…tech / new
Foreign markets
HOW do I Buy Stocks?
Need to be 18
Go to a broker
Online E-Trade
WHEN Can I Buy?
NYSE 9:30 am to 4:00 pm Eastern Time!
On-Line Pretty much anytime!
Does Every Company Offer Stock?
No!Some are “private”
Reasons to “go public” Called the IPO (Initial Public Offering)
Raise money Continue profits Share profits!
A Good Idea?
Terms to Know
Company Name
Ticker Symbol
Share Price
Range
HOW Do I Make Money?
1) Through dividends Some companies pay shareholders a percentage of
their profits.
2) Sell your stock Difference between money in hand OR money on
paper.
Examples…
Ticker Symbol
# of shares $ when bought
Total Investments $ when sold +/--
AAPL 100
SBUX 100
GOOG 100
Apple – 1 Day
Apple - 5 Years
Starbucks – 1 Day
Starbucks – 10 Years
Google – 1 Day
Google – Entire History
Halliburton – Oil and Construction
Boeing - Airlines
American International Group (AIG)
Enron
Stock Portfolio
The collection of stocks you own.
Portfolio make up will depend on your goals… Retirement Make extra money Pay for college
…and your age. Close to retirement? How old are the kids?
Eggs?
All eggs in one basket? Why or why not?
Diversification! Spreading your money around!
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