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The Ups & Downs of the Stock Market. How does the stock market work?. http://www.youtube.com/watch?v=0t_nA3gTkSI. Who Owns Mcdonald’s?. 1,800, 000 shares Does this mean 1, 800, 000 people own it? Why would you invest in Mcdonald’s?. How to make $ from the stock market?. Dividends
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How does the stock market work? • http://www.youtube.com/watch?v=0t_nA3gTkSI
Who Owns Mcdonald’s? • 1,800, 000 shares • Does this mean 1, 800, 000 people own it? • Why would you invest in Mcdonald’s?
How to make $ from the stock market? • Dividends • Capital Gain- Sell shares for more than you bought them for!
Investment Lingo • Stock Exchange: An institution that regulates the buying and selling of stock to ensure it is done fairly E.g. New York Stock Exchange (NYSE) Toronto Stock Exchange (TMX) • Share/Stock: A unit of ownership in a company
Investment Lingo • Ask: The lowest price a shareholder is willing to sell a stock • Bid: the highest price an investor is willing to buy a stock • Bear Market: When most stock prices are falling
Investment Lingo • Bull Market: When most stock prices are rising • Dividend: A portion of a company’s profits that are paid out each year • Portfolio: The different stocks an investor has chosen to purchase
Investment Lingo • Primary Distribution (IPO): The first issue of shares by a company • Secondary Market: After the primary distribution, investors may sell shares to other investors through member firms of a stock exchange
Investment Lingo • Volatility: A measure of the variation of stock prices over time
Initial Public Offering (IPO) • The first sale of stock by a formerly private company • 19,605,052 shares at a • price of $85 per share