1. The Stock Market Continued Personal Finance Mrs. Brewer

2. The Stock Market Game www.smgww.org

3. INVESTMENT OBJECTIVES Buy and Hold Buy and Sell Rapidly Time Frame Diversify

4. Stocks Large Cap – Greater than 10.9 Billion Blue Chip Stocks Higher Price Best Price Stability Least Risk Minimal Growth Potential

5. Stocks Mid Cap – Greater than 2.3 Billion Baby Blue Chips Greater Growth Potential Small Cap – Less than 2.3 Billion Growth and Tech StocksTech Stocks Potential Big Gains High Risk

6. Types of Stocks COMMON STOCK Shares sold to investors Gives Voting Rights May pay Dividends PREFERRED STOCK Shares sold to investors Guaranteed Fixed Dividends (paid before common stock dividends) No Voting Rights

7. Types of Stocks INCOME STOCKS Pay High Dividends Price of Stock does not rise quickly Utility Companies Transportation Companies GROWTH STOCKS Fast Growing No Dividends Potential for High Growth Riskier Ebay, Starbucks

8. Types of Stocks CYCLICAL STOCKS Price goes up and down with economy Alcoa Caterpillar DEFENSIVE STOCKS Resilient to economic cycles Wal-mart Auto Repair Shops Food Stores

9. Bonds Basically an IOU Promissory Note to Pay Specific Maturity Date –Short Term 1-5 Years –Long Term 30-40 Years Issued in multiples of $1,000 or $5,000 Annual or Semiannual Interest Payments

10. Types of Bonds Corporate Bonds Municipal Bonds Government Bonds Issued by Corporations to raise money Public entity that issues bonds Treasury Notes Savings Bonds

11. Mutual Funds A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. 401(K) Plans

12. HOW TO INVEST http://www.xtranormal.c om/watch/11329510/ Listen for these terms: Online Brokerage Full Service Brokerage Financial Planners/Advisor Direct Purchase Plan

13. Investment Options Online Brokerage www.eoption.com Full Service Brokerages www.rateitall.com Financial Advisors & Planners Direct Purchase Plan www.stock1.com/stoc kc.htmwww.stock1.com/stoc kc.htm DRIP

14. Stock Tables

15. How to Read Stock Tables http://ttc.seal- pa.org/SafeVideos/Video.aspx?id=nW93A yN8u5Ahttp://ttc.seal- pa.org/SafeVideos/Video.aspx?id=nW93A yN8u5A

16. Stock Market Calculations PPL Dividend $1.40 on 150 Shares. How much did we earn? WalMart Buy 200 shares at 51.75. Sell them at 52.07. How much was your profit? McDonald’s closing stock price? Up or Down? How much?

17. The Rule of 72 How long will it take to DOUBLE my $$? 72 divided by Interest Rate = # Years 72/3%= 24 years

18. The Rule of 72 At what Interest Rate will my $$ Double? 72 divided by Years to Double = Interest Rate 72/10 years = 7.2%