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How can we tell how the market is doing?

How can we tell how the market is doing?. What can you tell me? Today we are going to learn about Stock Market Indicators. More on the stock market. Tools that we can use to help measure what is going on in the market. DOW Industrial Average

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How can we tell how the market is doing?

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  1. How can we tell how the market is doing? • What can you tell me? • Today we are going to learn about Stock Market Indicators. More on the stock market

  2. Tools that we can use to help measure what is going on in the market. • DOW Industrial Average • The average is computed from the stock prices of 30 of the largest and most widely held public companies in the United States • Standard and Poor’s 500 (S&P 500) • Covers market activity for 500 companies • It is more accurate than the DOW because it has more variety • NASDAQ • Measures 4,000 companies and only stocks on the NASDAQ

  3. DOW 30 AlcoaAA American ExpressAXP AT&TT BoeingBA CaterpillarCAT Coca-ColaKO CitigroupC DisneyDIS DuPontDD Eastman KodakEK Exxon MobilXOM General ElectricGE General MotorsGM Hewlett-PackardHWP Home DepotHD HoneywellHON IBMIBM IntelINTC International PaperIP Johnson & JohnsonJNJ McDonald'sMCD MerckMRK MicrosoftMSFT 3MMMM JP MorganJPM Philip MorrisMO Proctor & GamblePG SBC CommunicationsSBC United TechUTX Wal-MartWMT BACK

  4. Ups and Downs • The term bull market means the market is doing well because investors are optimistic about the economy and are purchasing stocks • The term bear market means the market is doing poorly and investors are not purchasing stocks or selling stocks already owned

  5. Bull vs. Bear • The use of "bull" and "bear" to describe markets comes from the way in which each animal attacks its opponents. That is, a bull thrusts its horns up into the air, and a bear swipes its paws down. These actions are metaphors for the movement of a market: if the trend is up, it is considered a bull market. And if the trend is down, it is considered a bear market.

  6. Purchasing Stock

  7. Brokers • A Broker is a person who is licensed to buy and sell stocks, provide investment advice, and collect a commission on each purchase or sale • Purchases stocks on an organized exchange (stock market) • Over ¾ of all stocks are bought and sold on an organized exchange • Discount Broker and Online Broker—They don’t’ charge a lot of money because you do most of the work. Fees are charged for additional services.

  8. Reading Stock Quotes M:DrivePfi HertleinFolderInvesting Learning the Stock Ticker Complete this assignment—you have 20 minutes

  9. Year to Date Percent Change • Year to date (YTD) percent change is the stock price percent change from January 1st of the current year • If a stock was $43.00 on January 1st and $36.00 on July 30th,, the percentage change would be -16.3%

  10. 52-Week High Low 52-Week High & Low shows the highest and lowest prices the stock was sold per share during the last 52 weeks

  11. Stock Name Stock – Each company’s stock is provided with an abbreviated trading symbol name 3-4 letter acronym TICKER SYMBOL

  12. Dividends per share • Dividends per share is the total cash paid to common stockholders per share annually • Helpful when determining the type of stock • If a company paid $10,000 in dividends for 30,000 shares, the dividends per share would be $0.33

  13. Dividend Yield Percentage • Dividend yield percentage is the dividend expressed as a percentage of the price of the share • If a company paid $1.25 in dividends for a stock with a market price of $50.00, the dividend yield percentage would be 2.5% (1.25/50) • Helpful to know how much income to expect. A company paying high dividends is not reinvesting money to grow.

  14. Price/Earnings Ratio • Price/earnings ratio is the closing price of the share compared to the annual earnings per share • If the stock’s market price is $50.00 and the earnings per share is $2.25, the P/E ratio is 22.2 • For every dollar the company earns, the stock’s market price is worth $22.00 • A high number indicates people are optimistic about the company and health of the market.

  15. Volume • Vol 100’s is the number of transactions to the share on the reported day • Represented in hundreds (take the number and add two zeros)

  16. High and Low • High and low entries represent the high and low selling price of one share for the previous day

  17. Close • Close is the price of the last share sold for the day

  18. Net Change • Net change is the difference between the closing price of the share from the prior day and the current day

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