Tonight’s Agenda

1. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION DISCUSSED DURING HAWKTRADE MEETINGS.  Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. Investing in any financial instruments does not guarantee that an investor will make money, avoid losing capital, or indicate that the investment is risk-free. There are no absolute guarantees in investing. HAWKTRADE and its members do not bear any responsibility for losses or gains made by members trading on their personal accounts based on analysis from HAWKTRADE meetings.

2. Tonight’s Agenda • HawkTrade Info • Stocks: The Basics • The Fed/ Europe • Companies

3. HawkTrade Dues • $15 or $20 if you want a shirt • You have 2 more weeks to order a shirt, 3 weeks to pay dues

4. Shirts

5. Executive Positions • President • Vice President • Director of Marketing • Director of Group Simulations • Director of Technology • Officer of External Affairs • Secretary

6. HawkTrade Location • Considering moving meetings to the University Capital Center (2nd floor of mall) • Opinions?

7. What Actually is “Stock”? • A stock represents a percentage of ownership in a company. • When you INVEST in STOCKS you buy “shares” of that company.

8. What Actually is “Stock”? • The percentage of the company you buy with each share depends on the total number of shares available (shares outstanding) • Shares Outstanding - Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public Source: Investopedia.com

9. What Actually is “Stock”? • Found via their TICKER SYMBOL • 1 to 4 letters in length • Citigroup= C • Alcoa = AA • Bank of America= BAC • Apple = AAPL

10. Stock / Outstanding Shares Example • Stock Price = Market Cap ÷ Shares Outstanding • Example: (CMG)

11. Stock Research • Google Finance • Yahoo Finance • Your online broker • Bloomberg.com • Morningstar.com • Investopedia.com • CNBC.com • Rueters.com

12. Where Can I buy stocks ??? • Answer: The Stock Market

13. Stock Market • Where shares of stock are traded • Several different exchanges: NYSE, NASDAQ, AMEX • International Markets • You need a broker to buy the stock for you

14. Stock Market • Divided into SECTORS • Basic Materials, Conglomerates, Consumer Goods, Health Care, etc. • Within these SECTORS they are further divided into INDUSTRIES • Every company is listed in a sector within an Industry.

15. Online Brokers

16. US Index Performance *As of market close 9/16/11

17. European Debt Crisis: Light at the End of the Tunnel or Train Wreck?

18. Why does Europe Matter… Europe is a $14 trillion economy. If it collapses, it could drag the U.S. into a recession or depression.

19. S&P 500 1 Week Chart

20. 5 Central Banks To The Rescue • 5 Central Banks will cooperate to offer three-month U.S. dollar loans to provide liquidity for EU Commercial Banks • To the rescue: • ECB • US Federal Reserve • Bank of England • Bank of Japan • Swiss Central Bank • China is willing to buy bonds, Not the same thing as providing liquidity

21. EU leaders & Geithner go to Poland • The First time our Treasury Secretary has taken his duties overseas. • He is urging the EU to “act decisively” and to speak with one voice

22. Purpose of Poland Meeting • Take Steps towards improving Fiscal Unity in the EU • Capitalizing the Banks • Increasing emergency funds

23. Fiscal Policy- Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.

24. Fiscal Policy • The EU doesn’t have fiscal policy because they have 17 diff countries & gov’ts • U.S. does have Fiscal because we have one Federal Gov’t • Obama’s $450 billion dollar stimulus plan • Debt Ceiling Debate

25. Thu 15 Sep 11 | 12:30 PM ET Good News Out of Europe Play 2:30-7:00

26. ECB: Holding Europe together

27. Austerity- A state of reduced spending and increased frugality in the financial sector. Austerity measures generally refer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits.

28. Greece might get booted • Will be a good thing for Europe in the long run. • Too difficult for them to grow with that much debt • If Greece leaves the EU, Portugal could be the next in line

29. How bad can it get?

30. Next week’s Economic Calendar: FOMC Meeting in Focus

31. Monetary Policy & Fed Preview

32. Monetary Policy • Interest Rates that banks borrow at • Current Fed Rate ≈0.25% • Quantitative Easing ( AKA: “QE” ) • Printing money • Money Supply • More money in the system = weaker dollar, higher asset prices • Less money in system = stronger dollar, lower prices

33. The Federal Reserve’s Dual Mandate • Maximum Employment • Price Stability

34. Federal Reserve Districts

35. The Fed • Ben Bernanke aka “Helicopter Ben” • Federal Reserve Chairman • Saved us from a depression • Expert in the Great Depression • Greatest concern is deflation • Has a target of 2% annual inflation

36. What will the Fed do? • QE3…..? • QE with a “Twist”? • Innovative method of reducing interest rates by exchanging short-term securities on balance sheet for longer dated securities • Ex: Selling 2 yr. notes on balance sheet and buying 30 yr. notes • Current balance sheet at $2.3 trillion

37. Thu 15 Sep 11 | 07:01 PM ET Bulls Make It Four in a Row