Stocks and BondsJoanna Lagunas &Merissa Guerrero

Period: 1

A stock is a claim on the asset of a corporation that gives the buyer a share in the corporation.

WHAT IS A

STOCK?

• It can go to the bank and borrow money• Can borrow the money by issuing a bond• To sell or trade stock in the company

HOW DOES THE

STOCK MARKET WORK?

• Can buy or sell through brokerage firm, discount broker, or online broker

• Choose any stock that you believe will successful & rise in price

HOW DO YOU SELL & BUY STOCKS?

• Simply an IOU (promise to pay) towards the government or a company

• There are different types of bonds

WHAT IS A BOND?

1. Treasury bill notes2. Municipal bonds3. Corporate bonds4. Inflation-indexed

treasury bondsMAJOR COMPONENTS

OF A BOND

1. Face value2. Maturity date3. Coupon rate

TYPES

OF BONDS?

• Devised and configured the average price of stocks

• Appeared on stock markets over a hundred years ago & is still used today

• Know as the Dow Jones Industrial Average (DJIA)

CHARLES H. DOW

DJIA• Weighted average of 30 widley traded stocksIn the New York Stock Exchange• Stock index

And index is portfolio of stocks that represent a particular market or portion of it

Used to measure changes in a market or an economy

• An easy to composite funds is with a spyder or SPDR’s (Standard and poor’s depository receipts

• Securities representing ownership in a trust

• When bought, someone is buying the stock of five hundred companiesCalled “buying the market”

Instead of buying one stock you're buying more than one

WHAT IS A SPDR?

Aronold, Rodger A.. Economics: new way of thinking. St. Paul Minn.:EMC Pub.,2007 Print"Renaissance Connection." The Renaissance

Connection, from the Allentown Art Museum. N.p., n.d. Web. 13 May 2013. "Money | Life Coaching With Tiffany Rae." Life

Coaching with Tiffany Rae. N.p., n.d. Web. 13 May 2013.

WORK CITED