Stock Market Game

Introduction to the Market

Stock Market Terms Stock Ticker Dividend Symbols Public Company Share Portfolio Brokerage Fee

Definitions of Stock Market Terms Stock- Ownership of a Company. When

you purchase stock, you become part owner in that company. As a shareholder you are entitled to earnings

of the firm.

Stock Cont’d Some profitable companies pay out some

or all of these earnings to shareholders as Dividends.

Other companies may re-invest these earnings in order to grow the company. The assumption here is the shareholder will

enjoy greater earnings in the future if the company grows.

Investors Investors will pick shares in companies

that are profitable or are expected to become profitable. What makes a company profitable? What are some popular items or services that

are available now? If you wanted to own any of these which ones

would own?

Interpreting the Market Ticker- The Stock ticker shows the last sale

price and volume of an equity trade. Stock Ticker is what you see rolling at the

bottom of the screen on MSN or FOX Business News, etc.

Looking at Stock Symbol- The letters used to identify listed

companies. Examples: Allstate Corp.: ALL, Amazon.com: AMZN

Looking at Stock (WFC)

27.97down -0.11 -0.39%

Previous Close 28.08

Open 27.93

Day's High 28.05

Day's Low 27.61

Volume 8.52 Mil52 Week

High 31.53

Avg. Daily Vol. (13 wk.)48.42

Mil52 Week

Low 7.8

Stock profile terms…. 52 Week High- Highest price in last 52

weeks. 52 Week Low- Lowest Price in last 52

weeks. Open- Opening price of the stock during

that day. Previous Close- yesterdays closing price. Days High- current high price of the day. Days Low- Lowest price of the current day.

Choosing Stocks Diversify your portfolio

Cannot choose any more than 30% of portfolio to any particular stock or mutual fund.

Diversification helps offset losses in down times, as well as, helps keep your yearly average rate of return more stable.

Choose stocks from different industries. Example: Financials, Commodities, small cap., Large Cap., etc.

Buying and Selling Stock… Be careful how often you buy and sell.

Brokerage Fee’s can add up. A brokerage fee is a fee buyers and sellers pay

in order to buy or sell stock. Remember when you buy or sell to add the 2%

brokerage fee in to justify how much you made or invested in a particular stock.

Where you can research…. Yahoo finance www.yahoo.com/finance MSN Money www.MSNmoney.com The street www.thestreet.com

TV Shows and channels that have stock updates and picks. Mad Money –MSNBC Daily Closing Bell Fox Business Network MSNBC CNN