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the stock exchange. BBI 2O. Agenda. Review saving vs. investing Identify types of stocks Learn to read a stock table & ticker tape Take the TSE Stock Search Trick or Treat. Saving:. Why we Save?. What can you do with your money?. Saving Money put aside for future use
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the stock exchange BBI 2O
Agenda • Review saving vs. investing • Identify types of stocks • Learn to read a stock table & ticker tape • Take the TSE Stock Search • Trick or Treat
Saving: • Why we Save?
What can you do with your money? • Saving • Money put aside for future use • Easy to open, fixed rate of return, protected • Investing • Money used to earn more money or extra income • Higher rate of return, greater or equal to inflation • Yields not guaranteed, risk
Common Saving Plan VS Compound Saving Plan
Investing: • High risk = High Return Only Invest what you can afford to lose!
What are the forms of investment? • Bonds • Lending money • Guaranteed, liquid • Stocks • Invest in stock become part owner or shareholder of that company • Risks & rewards
Types of stock • Common Stock • Ownership in company • Claim on a portion of profits (dividends) • Higher returns • More risk • Preferred Stock • Guaranteed fixed dividend forever
Types of common stock • Blue Chip • Stable growth patterns • Dividend payment history • Less risky • Growth • Potential for profitability & rapid growth • Reinvest profits into operations • Higher risk than blue chip • Penny • Sell for less than a $1 • Highly speculative, newly formed companies • High risk investments, potential for high return
The stock exchange • Places where buyers & sellers meet and decide on a price in order to exchange stocks.
What is the ticker tape? • Stock market information scroll (i.e. TV screen) • Example MSFT5K @ 61.25 3.35 (ticket symbol, shares traded, price traded, change direction, change amount)