1. Bulls and Bears and Boats, Oh My! Lesson 16 Slide 16A

2. What Does That Mean? TermDefinition dollar volume dollar value of shares traded in a given period. share volume number of shares traded. stock market index a method of measuring the performance of a section of the stock market or the stock market as a whole by averaging price changes of selected stocks. blue chip stock stock issued by a well-established, large cap company with a reputation for quality, reliability, and profitably. Slide 16B

3. What Does That Mean? TermDefinition NASDAQ Stock Market Compositean index that includes all of the stocks listed on the NASDAQ. The Dow Jones Industrial Average DJIA or Dow; an index which tracks 30 of the most influential American companies. S&P 500 a market index that includes 500 of the most widely traded stocks of the NYSE and Nasdaq. Slide 16C

4. What Does That Mean? Slide 16D TermDefinition Nikkei 225 the Nikkei; an index of 225 top-rated Japanese companies listed on the Tokyo Stock Exchange. Hang Seng the Hang Seng or HSI; an index consisting of the 50 largest companies traded on the Hong Kong Stock Exchange. bull market a period of long term rise in the stock market, or a particular sector or industry within it. bear market a period of long term decline in the stock market, or a particular sector or industry within it.

5. Reminder Slide 16E  Remember to visit http://c21student.com/flashc ards/ http://c21student.com/flashc ards/ to access the online flashcards!

6. Lesson 16 Objectives  Explain the purpose of a stock index.  Interpret a stock index.  Name five major market indexes.  Compare a bear vs. bull market.  Tell about the goals and tools of the International Monetary Fund and World Bank. Slide 16F

7. You know those standardized tests students (and teachers) endure every year? The data provided by those tests is analyzed, scrutinized, and agonized over by state education officials, district administrators, principals, teachers, and parents. Why? What does the test data reveal? Slide 16G

8. Slide 16H Let’s Interpret a Stock Index!

9. Slide 16I Major Market Indexes  DJIA (The Dow)  S&P 500  NASDAQ  Nikkei  Hang Seng

10. Indexes provide data for…  Comparing stocks country to country  Comparing stocks sector to sector  Comparing stocks industry to industry  Comparing large mid and small cap stocks  And any other combination Slide 16J

11. The Big Picture Slide 16K An index is a portfolio of stocks selected based on particular criteria. Indexes measure the performance of a segment of the stock market or the stock market as a whole by averaging price changes of the selected stocks. Indexes provide a snapshot of market conditions, insight into trends, and data for comparing like markets. Major market indexes are the DJIA, S&P 500, Nasdaq Composite, Nikkei, and Hang Seng. Bull and bear markets are when the market, or a sector of the market, trends up (bull) or down (bear) over an extended period of time. While stocks occasionally move in unison based on market mood, they generally move independent of one another. Being financially literate in the 21st century requires an understanding of the purpose and use of a market index, and familiarity with the major market indexes.

12. Ponder and Predict  The global economy is growing fast and it’s very competitive. Every nation wants an active and lucrative world trade. Can one country deny companies from another country access to their markets in order to protect or favor their own country’s products? Why would any country allow free and open access to their markets? What are the benefits? Slide 16L