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Different kinds of stocks There are thousands of stocks to choose from, so investors usually like to put stocks into different categories.

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Presentation on theme: "Different kinds of stocks There are thousands of stocks to choose from, so investors usually like to put stocks into different categories."— Presentation transcript:

1 Different kinds of stocks There are thousands of stocks to choose from, so investors usually like to put stocks into different categories. http://money.cnn.com/pf/101/index.html

2 Public Co. are different Sizes… A company's size refers to its market capitalization is the current share price times the total number of shares outstanding (volume) How many people own this stock The more people that own it, the bigger its VOLUME is…..

3 Large-cap: A stock with a high level of capitalization, usually at least $5 billion market value.stockcapitalizationmarket value Large-cap companies tend to be established and stable they tend to have slow growth Tend to Pay dividends to shareholders Money at the end of the year if the company did really well A way to say “THANKS” for investing in us

4 Small-cap Small-capitalization (small cap) stocks The stocks of companies whose market value is less than $1 billion.stocksmarket value Small-cap companies tend to grow faster than large-cap companies but they tend to also be VOLATILE: Risky and typically use any profits for expansion of the company instead of paying dividends.profitsdividends

5 Volume – how many shares are bought in a day/ sold in a day…trading activity! EPS – Earnings Per Share – On average, how much $$ stockholders are making per share

6 Equity, their WORTH: analyses assets (everything they own) vs. liabilities (debt) Always check a company’s This is found on their BALANCE SHEET

7 Always check a company’s Net Income (profitability) Analyzes their Revenue (Sales) and Expenses (Bills) This is found on their Income Statement

8 On top of your stock winnings…. You want a company that will pay you DIVIDENDS… Money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. Bonus…an extra, a present to say thank-you to shareholders…. All dividends must be declared by the board of directors and are taxable as income to the recipients.dividends

9 Where Stocks are Traded: Exchanges: Public Co. can either hire NYSE or Nasdaq to be in charge of their trades The New York Stock Exchange: NYSE Wall Street, in NYC It is the largest stock exchange in the world by dollar volumedollar volume Nasdaq: National Association of Securities Dealers Automated Quotations It is the largest electronic screen-based equity securities trading market in the United Stateselectronicequity securities AMEX – American Stock Exchange

10 Stock Market Indictors: If the DJ and the S&P is UP on average, than overall, the economy is considered to be doing well If the DJ and the S&P is DOWN on average, than overall, the economy is considered to be doing poorly The Dow Jones It is the oldest continuing U.S. market index Today, the averages consists of 30 of the largest and most widely held public companies in the United States.United States http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average The S & P is a stock index that tracks 500 prominent companiesstock index http://en.wikipedia.org/wiki/Dow_Jones_Composite_Average

11 Dow Jones The best known US index of stocks. A price- weighted average of 30 actively traded blue-chip stocks, primarily industrials including, stocks that trade on the New York Stock Exchange.New York Stock Exchange The Dow, as it is called, is a barometer of how shares of the largest US companies are performing. shares Every 3 months (quarter), the DOW is re- evaluated to see if any company should be “kicked out”

12 The S & P 500 Standard & Poor's breaks stocks into 10 sectors Best performers within those 10 sectors, and dozens of industries. Generally speaking, different sectors are affected by different things. So at any given time, some are doing well while others are not. In most cases, finance, health care, and technology tend to be the fastest growing sectors, while consumer staples and utilities offer stability with moderate growth. The other sectors tend to be cyclical, expanding quickly in good times and contracting during recessions

13 Who is Warren Buffet? http://www.youtube.com/watch?v=nHeraR449qw - 7 minutes http://www.youtube.com/watch?v=nmWTtYg95YI&NR=1 http://www.youtube.com/watch?v=nHeraR449qw http://www.youtube.com/watch?v=nmWTtYg95YI&NR=1 An investor, businessman, and philanthropistinvestorbusinessman philanthropist the most successful investors in history, the largest shareholder and C.E.O. of Berkshire HathawayshareholderC.E.O. in 2008 was ranked by Forbes as the richest person in the world with an worth of approximately $62 billionForbesworth http://finance.yahoo.com/q?s=BR K-A http://finance.yahoo.com/q?s=BR K-A

14 STOCK MARKET LINGO Review vocabulary – see worksheet Quiz tomorrow on vocab and what moves stock prices!

15 Interview with Warren Buffet http://video.msn.com/v/us/msnbc.htm? g=e1fa1902-1cea-4cbd-9a24- 9d18e86828c8&f=00&fg=copy http://video.msn.com/v/us/msnbc.htm? g=e1fa1902-1cea-4cbd-9a24- 9d18e86828c8&f=00&fg=copy http://video.msn.com/?mkt=en- us&brand=msnbc&fg=copy&vid=e1fa1 902-1cea-4cbd-9a24- 9d18e86828c8&from=00 http://video.msn.com/?mkt=en- us&brand=msnbc&fg=copy&vid=e1fa1 902-1cea-4cbd-9a24- 9d18e86828c8&from=00

16 Watch last night’s Lightening Round with Jim Cramer http://www.cnbc.com/id/15838459

17 How the Market is doing…. Bull Market Bear Market

18 The Martin Frankel Case: Watch the story \\hestia.havsd.int\JMccarty\McCarty's Personal Finance\Unit 7 --STOCK MARKET\The Martin Frankel Case - CNBC_com.mht

19 http://www.berkshirehathaway.com/mes sage.html http://www.berkshirehathaway.com/mes sage.html

20 Online Quiz http://cgi.money.cnn.com/tools/cgiquiz/cgi quiz_101.jsp?id=5 http://cgi.money.cnn.com/tools/cgiquiz/cgi quiz_101.jsp?id=5 Stock Market Stock Dividends Stock Ticker Symbol Bear Market Bull Market Broker Income Statement Balance Sheet

21 http://www.slashfilm.com/2009/08/20/ michael-moores-capitalism-a-love-story- movie-trailer/ http://www.slashfilm.com/2009/08/20/ michael-moores-capitalism-a-love-story- movie-trailer/


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