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Holicong Financial Club Introduction

Join the Holicong Financial Club to expand your knowledge of the stock market and investing. Participate in mini lessons, Shark Tank activities, and more. Learn about stocks, tickers symbols, IPOs, and the different markets and indices. Discover how to make money in the market and how to invest based on your financial goals and risk tolerance. Gain a solid foundation in investing through this club.

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Holicong Financial Club Introduction

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  1. Holicong Financial Club Introduction

  2. Syllabus • Neel Mehta and Jack Haggerty • Meetings are from 2:40-3:30 every other Friday • Calculators, notebooks, and pencils are encouraged • Sign in!

  3. The Plan • Expand knowledge of the Stock Market and Investing • Mini Lessons • Shark Tank • School Store • Market Watch • Other Projects and Activities

  4. What are Stocks? • Stock is ownership in a publicly traded company. • Stock is a claim on the company’s assets and earnings. • The more stock you have, the greater your claim an owner.

  5. Types of Stock • Common Stock – most common form of stock. • Dividends are not guaranteed • Preferred Stock • Fixed dividend • Companies may customize other “classes” of stock.

  6. Ticker Symbols • All securities traded on the stock exchange have a ticker symbol • Microsoft (MSFT) • Southwest Airlines (LUV) • Ford Motor Company (F) • Google (GOOG)

  7. Initial Public Offering (IPO) • The first time a stock is sold to the public • Sold in the Primary Market

  8. The Markets • Primary Markets – where stocks are created • Secondary Markets – investors trade previously issued stocks • The Stock Market • Companies are not involved in the buying and selling of their stock.

  9. The Exchanges • Where Stocks are Bought and Sold • New York Stock Exchange (NYSE) • American Stock Exchange (AMEX) • NASDAQ

  10. The Indices (index) • A collection of stocks—representative of the stock market • Dow Jones – 30 most significant stocks in the stock market • S&P 500 – 500 largest companies on the US stock market • NASDAQ Composite – all stocks on the NASDAQ

  11. How Do You Make Money in the Market? • Stock Price Goes Up and You Sell • Buy low, sell high • Dividends • Not all companies pay dividends

  12. What Causes Stock Prices to Change? • Supply and Demand • Earnings and Expectations • Sentiments and Attitudes • Economic Indicators • Follow the Leader (volume) • Anything 

  13. Why Invest in Stocks? • The return on investments in the market are 3-4 times the annual return of inflation, savings and treasury bonds • You can make good money in the market • You can loose money too……

  14. How Should I Invest? • What are your financial goals? • What is your risk tolerance? • Return rises with risk • Do you want to actively manage your portfolio? • Diversify • Don’t put all your eggs in one basket!

  15. Where do I Start? • Learn the Basics • Setup a brokerage account • Full-service vs. discount? • The Internet provides a variety of discount brokerage firms (do it yourself) • Fees, commission, minimum balance • Keep it simple as you learn • Learn about other investment vehicles

  16. Reading a Stock Table • Ticker Symbol – the alphabetic name that identifies the stock. • Price – current stock price • Open – current day’s opening price • Close – the last trading price from the previous day • Net Change – the net change from the previous day • Day’s Range – the current day’s price range • 52-Week Hi and Low – the highest and lowest prices at which a stock has traded over the past year • Trading Volume – the total number of shares traded for the day • Market Capitalization – the market value of the company • Dividend Per Share – annual dividend payment per share. • Price/Earnings Ratio – the current stock price divided by earnings per share for the last four quarters Click to Yahoo Finance

  17. Bulls and Bears • Bull Market – the economy is great and stock prices are rising • Bear Market –the economy is bad and a recession is looming

  18. Beyond the Basics • Bonds – a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. • Buying on Margin - borrowed money that is used to purchase securities. • Selling Short - a trade in which the investor borrows a security and sells it to another investor in market. • Dollar Cost Average - buying a fixed dollar amount of a particular investment on a regular schedule

  19. Options vs. Futures • Options give the holder the right to buy or sell the underlying asset at expiration, a futures contract is an obligation to fulfill the terms of a contract. • Options: A privilege, sold by one party to another, that gives the buyer the right, to buy or sell a stock at an agreed-upon price within a certain period or on a specific date • Futures: A financial contract obligating the buyer to purchase an asset at a predetermined future date and price (i.e. currency, commodities)

  20. Course Checklist • 1 • 2 • 3 • 4 • 5 • 6

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