70 likes | 182 Views
WeSeed and the Stock Market. Review-Vocabulary. Three Uses of Money: Investing Saving Spending Banks: An establishment or business that is used for the custody, loan, or exchange of money Interest: A charge for borrowed money
E N D
Review-Vocabulary • Three Uses of Money: • Investing • Saving • Spending • Banks: An establishment or business that is used for the custody, loan, or exchange of money • Interest: A charge for borrowed money • Value: A fair return or equivalent in goods, services, or money for something exchanged.
Vocabulary • Company: Is any entity, anything from small businesses to partnerships and corporations, that makes a service or good that the maker can sell for money. • Share: A single unit of ownership in a company. • Private: Usually only have a few owners. Negotiate business transactions within the company. Private investors. • Public: A company that has sold a portion of itself to the public through Initial Public offering. Shareholders now have a claim to the companies profit. • IPO: Initial Public Offering. Where shares of a stock in a company are sold to the public.
Review-Vocabulary • Good or Bad? • Ask those three questions • Mini Markets? • Do these help you? • Why is it so important to know the company you are investing in? Why is profit so important?
How Companies Make Money • What is profit? • A financial gain • The difference between the amount earned and the amount spent in buying, operating, or producing something. • Companies deal with expenses everyday. What do you think these are? • http://www.census.gov/econ/bes/definitions.html
Profit • Companies must understand all of these costs in order to set their prices at the right value and make a profit. • Good companies have to know how to make a profit. They have to know how to make money.
Case Study • Answer this question in GoogleDocs: • Read the Case Study under “How companies make money”. Why do you think many .com businesses fell through? Why do you think many of these companies did not last? What was different about Amazon? • Once you finish this, to end class, gain more knowledge of your companies. Go into “Company Detail”. Look at some of the Market News. Look at Friendly Financial. Did your company make a profit? How much was this profit? Was it more than other companies? Less? How is the Total Revenue?