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Stock Market Game. Introduction to the Market. Stock Market Terms. Stock Ticker Dividend Symbols Public Company Share Portfolio Brokerage Fee. Definitions of Stock Market Terms. Stock- Ownership of a Company. When you purchase stock, you become part owner in that company.
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Stock Market Game Introduction to the Market
Stock Market Terms • Stock • Ticker • Dividend • Symbols • Public Company • Share • Portfolio • Brokerage Fee
Definitions of Stock Market Terms • Stock- Ownership of a Company. When you purchase stock, you become part owner in that company. • As a shareholder you are entitled to earnings of the firm.
Stock Cont’d • Some profitable companies pay out some or all of these earnings to shareholders as Dividends. • Other companies may re-invest these earnings in order to grow the company. • The assumption here is the shareholder will enjoy greater earnings in the future if the company grows.
Investors • Investors will pick shares in companies that are profitable or are expected to become profitable. • What makes a company profitable? • What are some popular items or services that are available now? • If you wanted to own any of these which ones would own?
Interpreting the Market • Ticker- The Stock ticker shows the last sale price and volume of an equity trade. • Stock Ticker is what you see rolling at the bottom of the screen on MSN or FOX Business News, etc.
Looking at Stock • Symbol- The letters used to identify listed companies. • Examples: Allstate Corp.: ALL, Amazon.com: AMZN
Stock profile terms…. • 52 Week High- Highest price in last 52 weeks. • 52 Week Low- Lowest Price in last 52 weeks. • Open- Opening price of the stock during that day. • Previous Close- yesterdays closing price. • Days High- current high price of the day. • Days Low- Lowest price of the current day.
Choosing Stocks • Diversify your portfolio • Cannot choose any more than 30% of portfolio to any particular stock or mutual fund. • Diversification helps offset losses in down times, as well as, helps keep your yearly average rate of return more stable. • Choose stocks from different industries. Example: Financials, Commodities, small cap., Large Cap., etc.
Buying and Selling Stock… • Be careful how often you buy and sell. Brokerage Fee’s can add up. • A brokerage fee is a fee buyers and sellers pay in order to buy or sell stock. • Remember when you buy or sell to add the 2% brokerage fee in to justify how much you made or invested in a particular stock.
Where you can research…. • Yahoo finance www.yahoo.com/finance • MSN Money www.MSNmoney.com • The street www.thestreet.com • TV Shows and channels that have stock updates and picks. • Mad Money –MSNBC Daily • Closing Bell • Fox Business Network • MSNBC • CNN