How does the stock market work? http://www.youtube.com/watch?v=0t_nA3g TkSI
Who Owns Mcdonald’s? 1,800, 000 shares Does this mean 1, 800, 000 people own it? Why would you invest in Mcdonald’s?
How to make $ from the stock market? Dividends Capital Gain- Sell shares for more than you bought them for!
Investment Lingo Stock Exchange: An institution that regulates the buying and selling of stock to ensure it is done fairly E.g. New York Stock Exchange (NYSE) Toronto Stock Exchange (TMX) Share/Stock: A unit of ownership in a company
Investment Lingo Ask: The lowest price a shareholder is willing to sell a stock Bid: the highest price an investor is willing to buy a stock Bear Market: When most stock prices are falling
Investment Lingo Bull Market: When most stock prices are rising Dividend: A portion of a company’s profits that are paid out each year Portfolio: The different stocks an investor has chosen to purchase
Investment Lingo Primary Distribution (IPO): The first issue of shares by a company Secondary Market: After the primary distribution, investors may sell shares to other investors through member firms of a stock exchange
Investment Lingo Volatility: A measure of the variation of stock prices over time
Initial Public Offering (IPO) The first sale of stock by a formerly private company 19,605,052 shares at a price of $85 per share