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Stocks. Devin Cain’t Speall !!!!!. By: Devin Hawthorne, Danny Goode, Morgan Booker, Keaton Marlow, Erica Shambo, and Tommy Roach!!!!!!!!. . A stock is…. The shares of a particular company or corporation. YAY!!!!!!!. Stock Exchanges….
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Stocks Devin Cain’tSpeall!!!!! By: Devin Hawthorne, Danny Goode, Morgan Booker, Keaton Marlow, Erica Shambo, and Tommy Roach!!!!!!!!
A stock is… • The shares of a particular company or corporation. YAY!!!!!!!
Stock Exchanges…. • Facilities that allow investors to purchase or sell existing stocks • Ex: New York stock Exchange, American stock exchange, Over-The-Counter, Electronic Communication Networks • Electric communication Networks (ECN)- computer APP that help you purchase stock by matching stocks
Stock exchanges • NYSE- New York Stock Exchange- most popular, Floor traders (traders at a stock exchange who execute trades to fulfill orders placed by investors) • NASDAQ Stock Market- free stock quotes, stock exchange prices, stock market news, and online stock trading tools • AMEX American stock exchange- has about 800 stocks that are generally smaller and less actively traded • Specialists- traders who help to make a market in one or more stocks by taking the position opposite of orders placed by clients • Over-the-counter(OTC) market- an electronic communications network that allows investors to buy or sell securities • Market makers- traders who work through (OCT) and get commision
Stock Quotations • What? They provide info. About the price of a stock the day before or over a time period • Where? They are available online, through stock brokers, or in financial newspapers.
Buying and selling stocks • Selecting a broker • Brokers and analysts tend to be optimistic • May encourage frequent trading (they work for commission) • There is a tax effect of trading • Brokers have online reviews and histories you can look at • Types • Discount brokerage firm- does transactions you want, no advice • Full-service brokerage firm- give advice and does the desired transactions
Buying and selling stocks • Name of stock • Ticker symbol: the abbreviated term used to identify stocks • Number of shares • Round lot: shares Purchased or sold in multiples of 100. • Odd lot: shares Purchase./Sold in multiples less than 100 • Market Order or Limit Order • Market order: An order to buy or sale a stock at its prevailing market price • Limit order: an order to buy or sale a stock at its set limit
Buying and selling stocks • Stop orders • Stop order: an order to execute a transaction when the stock price reaches a set level (special form of limit order) • Buy stop order: an order to buy a stock when it reaches a set level • Sell stop order: an order to sell a stock when it reaches a set level • Buying stock on margin • On margin: purchasing a stock with a portion of the funds borrowed from a brokerage firm • Federal Reserve limits margin to 50% • Margin call: a request from a brokerage firm for the investors to increase the cash in the account in order to bring the margin back up to the minimum level
Analysis of the firm • Annual report • Balance sheets- show where funds come from • Income statement- measures their money and where it goes • Technical analysis- the valuation of stocks based on historical price patterns • Fundamental analysis- valuation of stocks • a complete analysis of the firm such as its worth, profit, the economy, and planning for the future.
Activity • You start with $1,000 • You must invest most of your money in stocks • You can not go into debt when you purchase the stocks • After re-selling the stocks the person with the most money wins
Available stocks 800 390 30 77 23 52 38 29
Sale price 822 350 100 29 40 30 34 30