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The Stock Market. What is stock?. A piece of ownership in a company With enough percent of ownership you can have decision- making power Buying stock is a popular form of investing. What is a share?. one individual piece of stock. What determines a stock’s price?.
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What is stock? • A piece of ownership in a company • With enough percent of ownership you can have decision- making power • Buying stock is a popular form of investing
What is a share? • one individual piece of stock What determines a stock’s price? • investors perceptions • of what stock is worth • How big/successful the company is • state of the U.S. and world economies • bull/bear market
How do you decide what companies to invest in? Activity: List 5 products that you use/wear/eat on a regular basis Discuss these with a partner and brainstorm a list of companies that manufacture these products If you are unsure about the parent company go to www.finance.yahoo.com or go to www.google.com Many people begin their stock market investing with companies they are familiar with.
New York Stock Exchange • Go to www.nyse.com • Click on “symbol lookup” • Enter the company to find out if your company is listed on the NYSE • Write down the NYSE stock symbols for the companies you listed for your products • 7.These symbols will be used in the next lessons
Buying and Selling Stocks • When selling stock through a broker you pay commission. • You may also have to pay charges such as a service fee or Securities and Exchange Commission fee. • Sometimes states charge a transfer tax. • When calculating potential net proceeds from sale of stock: the market prices less the commission and all other charges • Market price – (commission + other charges)= net proceeds
Stock Market Game www.howthemarketworks.com
Stock Market Game • Click on “Join a contest” • Choose “Classroom and Private Groups” • Click on “$$$ Makers” • Join the contest: You must register and log on. You will need an email address and password • Once you have joined you can begin to make choices about what stocks you want to purchase