140 likes | 345 Views
Stock Market. Introduction to the Stock Market. What is a stock?. Partial ownership in a business Dividends = Profits paid out to stock holders four times a year or re-invested into the company Types of Stocks Common Stocks – people owning stock can vote for the directors of the company
E N D
Stock Market Introduction to the Stock Market
What is a stock? • Partial ownership in a business • Dividends = Profits paid out to stock holders four times a year or re-invested into the company • Types of Stocks • Common Stocks – people owning stock can vote for the directors of the company • Example: NW Natural Gas, GM • Preferred Stock – fixed dividends, no voting privileges • Example: Nike, McDonalds • Other words used for stocks • Equities • Securities • Shares
What is the difference between a mutual fund and a stock? • Mutual fund • Investment through a broker into a fund that has multiple stocks in many companies • Benefits: • Lower risk because you are diversifying your investment
Major Stock Markets • New York Stock Exchange (NYSE) • Wall Street • National Association of Securities Dealers Automated Quotations (NASDAQ) • Mostly technology stocks • Automated
How do I purchase stock? • Brokerage House • Full Service Brokers • Dean Witter, Merrill Lynch, Prudential Bach • Discount Brokers • Charles Schwab, Ameritrade, eTrade
Reading Stock Pages http://finance.yahoo.com/q?s=NKE
Major Stock Markets • New York Stock Exchange (NYSE) • Wall Street
Major Stock Markets • NASDAQ • National Association of Securities Dealers Automated Quotations • Mostly Technology Stocks
General Terms • Earnings per share: Amt of profit each share is entitled • Going Public: Company plans to sell stock • Share: investor’s ownership of the profits, losses, and assets of a company • Market Indices: tracks performance of specific group or market of stocks
Market Indices • Dow Jones: index of 30 “Blue Chip” US stocks of industrial companies (financial, computer, retail companies) • NYSE: New York Stock Exchange tracks the movements of all common stocks • Nasdaq: Tracks performance of 100 of the largest most actively traded stocks
Dow Jones • Coca Cola • Home Depot • AT&T • American Express • Bank of America • Dupont • GE
Nasdaq Stocks • Amazon.com • Apple • Costco • Comcast • Google • Dell