The Stock Market

United States HistoryMs. Girbal

Friday, February 6, 2015

Take out the ads had to bring for homework (an ad from the 1920s and an ad from today)- we will now compare and contrast them (find similarities and differences). Write ONE paragraph in COMPLETE sentences.

Look for the following: Black and white? Color? Is there text? Only images? Any slogans? Any images? What audience are your ads targeting? What story are your ads telling?

Make sure to answer the following: Do you think that ads have evolved from the 1920s to today?

If so, how? If not, then what elements are still prevalent?

Warm-up (2-6-15)

A stock market is where shares in corporations are issued and traded. Stock markets are key components of a free market economy.

Stock markets serve two main functions. Company perspective- provide access to capital,

usually in the form of cash. If a company needs to finance a major project, it can sell its shares in the stock market to raise capital, instead of borrowing the money from a bank.

Shareholder perspective- provides a way to participate in a company’s growth, and also quickly convert shares into cash. This happens in two main ways.

The Stock Market

When you own a share of stock, you are a part owner in the company with a claim (however small it may be) on every asset and every penny in earnings.

As a company's earnings improve, investors are willing to pay more for the stock.

The whole idea behind the stock market is for people to INVEST money into companies, so these companies have money to keep bringing in goods into the economy.

The Stock Market

Research better ways to make things Create new products Improve the products they have Hire more employees Enlarge or modernize their buildings

Companies sell stock to get money to

A bell that is rung to signify the start of the day's trading session. The opening bell is both a symbol of the opening of the market for the day and a physical event involving an individual striking a metal bell.

Since 1985, the New York Stock Exchange (NYSE) has used the opening bell to start its trading session at 9:30 a.m. (NY time)

They also use it to close the day- the end of the trading session at 1PM (NY time)

Dignitaries visiting stock markets take part in small ceremonies in which they ring the opening bell. Not all exchanges use this traditional system, with the NYSE remaining one of the more recognizable exchanges that still uses a bell.

The Bell!

Bear Market: This is trading talk for the stock market being in a down trend, or a period of falling stock prices. This is the opposite of a bull market.

Bull Market: This is when the stock market as a whole is in a prolonged period of increasing stock prices. Opposite of a bear market.

Broker: A person who buys or sells an investment for you in exchange for a fee (a commission).

Buying on Margin: person can borrow money (take out a loan essentially) from a broker to purchase an investment.

Exchange: An exchange is a place in which different investments are traded. The most well-known in the United States are the New York Stock Exchange and the Nasdaq.

Terms to help us…

Dividend: this is a portion of a company’s earnings that is paid to shareholders, or people that own hat company’s stock, on a quarterly or annual basis. Not all company’s do this.

Blue Chip Stocks: These are the large, industry leading companies. They offer a stable record of significant dividend payments and have a reputation of sound fiscal management. The expression is thought to have been derived from blue gambling chips, which is the highest denomination of chips used in casinos.

Portfolio: A collection of investments owned by an investor. You can have as little as one stock in a portfolio to an infinite amount of stocks.

Sector: A group of stocks that are in the same business. An example would be the “Technology” sector including companies like Apple and Microsoft.

Stock Symbol: A one-character to three-character, alphabetic root symbol, which represents a publically traded company on a stock exchange. Apple’s stock symbol is AAPL.

More terms…

Current – The current price of the stock, this will be the price the transaction occurs at.

Open – This is the price that the stock last opened at. This gives you an idea of how much the stock has moved since the last trading day opened.

High – This is the highest value the stock has reached in the last trading day.

Low – This is the lowest value the stock has reached in the last trading day.

How to read stock data…

Volume – The amount of shares that have been traded in the last trading day. This is helpful to understand if there has been lots of activity on this stock which might indicate that investors think it’s good or bad.

Change – The percentage change from it’s opening value to the current value.

Charts: The top chart is the last year, the bottom chart is the last trading day. Helpful to view trends.

Before you buy stocks, you have to do a little research on the companies you're thinking of investing in. Record of sales Earnings from pervious years Dividends paid Prospects for the future (growth)

Can’t predict the future for sure, but we can look and make predictions

Do your research first!

Stock Market Game Time!https://studentstocktrader.com

Ms. Girbal’s Period 5

16675-0mariners

Ms. Girbal’s Period 6

16682-0mariners

You must invest money (buy shares!)- the starting $50,000 cannot stay in your “cash” account.

You can ONLY keep around 5,000 in the “cash” at a time- the rest has to be invested in stocks

You must invest in at least 5 different companies You must have movement in your accounts at least

2 times a week You need to buy or sell I will be checking your profiles to make sure these

things are happening- this is for a grade! We will be playing for one month The top 5 winners will get extra credit

Rules of the Game (Updated)

Create a list of the products or websites you usually use or visit.

Look for things they have at home like cleaning products, dish soap, bath soap, laundry detergent, food items in the refrigerator or cupboard

In addition to the product name, look look into the company that makes the product, from here they can explore where the product was bought, who makes the product, and possibly other products the company produces.

Make sure you do your research on the company you are going to invest YOUR money into.

How to pick stocks…

Make sure that your account is set-up

Do your research and buy some stocks!

Homework (2-6-15)