ap stock market investing

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Today we will learn some finance Create a chart like this for the stock market: What I know: Want to know: (?s) Learned (end) At least 2 At least 2 At least 3

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Page 1: AP stock market investing

Today we will learn some financeCreate a chart like this for the stock market:

What I know: Want to know: (?s) Learned (end)

At least 2 At least 2 At least 3

Page 2: AP stock market investing

Investing in the USA• Stocks

• Bonds

• Stock Market

• NYSE, NASDAQ

• Dow Jones

• Bull vs. Bear

• Industries

Page 3: AP stock market investing

Investing

• Brokerage Account

• Old School – Stock Broker

• Higher fees, but advice

• New School – DIY online

• Lower fees, little to no help

Page 4: AP stock market investing

A stock broker at work

• Finance degree

• Income: $50,000 and up

• Commission per trade

Page 5: AP stock market investing

Famous InvestorWarren Buffett (1930-

One of 3 Richest people in the world ($52 Billion)

Successful investor

Earns only pays himself $100,000/year

“hold investments”

Page 6: AP stock market investing

2 basic financial markets

&

Page 7: AP stock market investing

Bonds

• Government backed• Very Safe• Low risk• Low return• Loan for a time

• Some tax free!

• Corporations also offer them

Page 8: AP stock market investing
Page 9: AP stock market investing

Stocks• Ownership in a

publically traded corporation

• Issued to raise capital

• Some pay dividends

• Voting rights

Page 10: AP stock market investing

Let’s try one

• $1,000 investment

• Someone name a large company

Page 11: AP stock market investing

Stock Exchange• Stock Market

• Place where Stocks are traded

• Most famous: NYSE

• Wall Street

• Others: NASDAQ,

• Nikkei

• London

• Hong Kong

• Chicago

Page 12: AP stock market investing

Why do stocks change their price?• Supply• Demand• Financial data• News

• IPOs• Pandora• Twitter• Facebook

Page 13: AP stock market investing

New York Summer 2011

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Stock Symbols

• Makes trading easier

• EX: Disney = DIS

• Use finance.google.com to look them up

• Show a stock ticker

Page 16: AP stock market investing

“Dow Jones”• Dow Jones” –

average 30 top US companies

• MMM, AXP, T, BA, CAT, CVX, CSCO, KO, DD, XOM, GE, GS,HD, INTC, IBM, JNJ, JPM, NKE, MCD, MRK, MSFT, PFE, PG, TRV, UTX, UNH, VZ,V, WMT, DIS

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Why? Real income?

Page 20: AP stock market investing

Bull vs. Bear Markets

• Bull Market

• Bear Market

• “Keynes’s ‘animal spirits’

Page 21: AP stock market investing

Mutual Funds

Page 22: AP stock market investing

Industries• Field of business

• Stocks follow others

• “Chinese increase car purchases”

• Tough times for biotechnology

Page 23: AP stock market investing

http://www.stockmarketgame.org/

Page 24: AP stock market investing

The Stock Market Game• National competition for students

• Teams compete, January – April

• $100,000 to invest, another $200,000 margin

• $15 fee per team, so we are 1 team

• Groups of 3, each different industry

• Oil/Energy, Tech/Entertainment, Food/Restaurants, Finance/Banking, Fashion/Retail

• 1 % commission

• Must by units of 100 shares (no google stock)

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Other stock simulators• Marketwatch.com (regular ninos)

• Updown.com ($1,000,000 play money, earn real cash if you make good investments)

Page 27: AP stock market investing

Quiz: This is Twitter’s stock ticker as of Friday’s close (and its whole life as a stock)

1. What is Twitter’s stock symbol?

2. Where is Twitter’s stock listed?

3. Approx. when was Twitter’s IPO?

4. How many shares exist?

5. Has Twitter made a profit yet? (EPS)

6. If I owned 100 shares on Thursday, how much more is my stock worth in total on Friday?

7. Should Klein have bought 100 shares on the IPO?

8. Does Twitter have a dividend?

9. What is its 52 high?

Page 28: AP stock market investing

In your groups• Find 4 stocks or funds for your industry

• For each:

1.Symbol, exchange, 52 week high/low, EPS

2.Company HQ, CEO, 2013 Profits

3.Price for 100 shares of this company

4.Positive or negative news story, explain, cite source, not MLA

5.Why you think our class should buy this stock. For example: Google, because their business is growing, EPS is….. Future growth depends on companies it owns.