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GI Beginners’ Series: Class II
November 15, 2007
Class I Review
Exponential Nature of Growth Concept of a Stock
Represents ownership Investor: Access to dividends and future earnings Company: Access to more capital
What Make Stocks Move Company-specific General market-movers
Class I Review
Market Structure Exchanges, Sectors, Industry Groups Indices
Terminology Market Sentiment Types of Positions Stock Classifications
Supply-Demand Influence on Prices
Supply-Demand Influence on Prices
Supply-Demand Influence on Prices General Dynamic
Supply increases or Demand decreases Price decreases
Supply decreases or Demand increases Price increases
Stock Dynamic More buyers than sellers
Price increases More sellers than buyers
Price decreases
Buying/Selling Pressure
Stock Price Increase Buyer’s (Bull) Market Implies optimism
Stock Price Decrease Seller’s (Bear) Market Implies pessimism
Strength of Increase or Decrease Day’s Volume vs. Average Daily Volume
Reading Stock Quote
Why Bother Quick snapshot Pertinent information without excessive research
Components Last Trade, Change, Bid, Ask Open, Close High, Low Market Cap Volume, Average Volume
Price-to-Earnings Ratio
How much, per $ of earnings, investors are willing to pay for each share
P/E Ratio Based on latest earnings report
Forward P/E Ratio Based on forecasted earnings
Price-to-Earnings Ratio
Implications
Growth Stock High P/E Ratio
Forward P/E > P/E Lower earnings forecasted
Forward P/E < P/E Higher earnings forecasted
Reading Stock Quote
Free websites: www.finance.yahoo.com www.finance.google.com
GI | Fantasy Stock Market GameSIGN UP TODAY!
1. Go to http://simulator.investopedia.com/
2. Create an account
3. Find our game by going to “Join a Game” on the left menu bar
4. Click on “Advanced Search Page”
5. Type in “G Investors” in Search box
6. Select the game and enter “investors” for the password
Any Questions, please LearnLink me
Game Name: G InvestorsPassword: investors
GI | Fantasy Stock Market Game Rules
Start with $10,000 Game ends on May 30, 2008
Long-Short Only No Options Margins Allowed
Highest Percentage Gainer receives $$$
Class 3: November 29
Fundamental Analysis
Market Forces GDP, Oil, Inflation Beta
Executing Trades Online
