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!