80 likes | 197 Views
BLU #15: Stocks! Nike Stock – 10 years. How much was each share of Nike in 2001? How much does each share cost today?. Stocks, the basics. Public corporations sells stocks , shares , of their company to raise capital Buy stocks through a broker , someone licensed to buy them
E N D
BLU #15: Stocks!Nike Stock – 10 years How much was each share of Nike in 2001? How much does each share cost today?
Stocks, the basics • Public corporations sells stocks, shares, of their company to raise capital • Buy stocks through a broker, someone licensed to buy them • Stocks are sold in a stock exchange • NYSE • Nasdaq
Buying stocks • Risky! Stocks can lose value • Stock prices change b/c of: • Company performance • Changes in economy • Job growth or loss • Other events • Japanese tsunami caused stock mkt to drop! • Sell stocks for more than you purchased, you make a profit, called capital gains (taxed!) • Stock Market History
Buying Stocks • Long term strategy: stocks may go & down (a lot!) but over the long term (many years) the stock market goes up!
Companies in Dow Jones • AT&T, Caterpillar, Exxon, Chevron, Cisco, Coke, etc • Total of 30 companies • Index Fund / Mutual funds: a select group of companies SO instead of buying 1 stock (very risky) you diversify (buy many types) which lessens the risk
Would you put your money in a savings account or stocks? Why?
1. 5 shares of Nike stock @ $30 per share = $150 Picking your stocks….