1. NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. MEETING #2 – STOCKS, BONDS & FUNDS OCTOBER 2, 2015 ic.stgeorges.bc.ca

2. Today’s Agenda What is…? A stock and a bond? A fund? Team Membership Item 1 Analyst Teams Head Analyst Applications How to Access Item 2 Stock Contest Contest Rules Item 3 Minutes Team Minutes Team Signup Item 4

3. What is a stock?  A piece of ownership of a company  Includes its assets and earnings  Publicly traded on one of the world’s stock exchanges (TSX, NYSE, NASDAQ, etc.) Image Here

4. How are stocks created?  Private -> Public  Initial Public Offering (IPO) done through an investment bank  Advantages:  Access to more capital  Liquidity of shares  Enforced by regulations Image Here

5. How are stocks evaluated?  Private  Evaluated by investment banks and other analysts  Public  Supply and demand of shares determines price

6. Three Types of Equity  Common Stocks  Preferred Stocks  Bonds Image Here

7. Common Stocks  Most common form of equity  What our club deals with  Part ownership of the company  Can pay DIVIDENDS Image Here

8. Preferred Stocks  Lower risk for investors  Guaranteed dividends at regular intervals  Trades at stable price  No voting rights Image Here

9. Dividends  Part of earnings paid back to shareholders  Usually quarterly  Gives incentive to buy a stock  Aligns with value investing goals  Warren Buffet bought Coca Cola in 1988 for $3.25 per share (now at $40 w/ $0.3 dividend) Image Here

10. Bonds  Offered by both government and corporations  A loan that the investor makes to the bond issuer (no ownership)  Pays interest rate until a maturity date  Safest but lowest returns  The club does not deal with bonds. Image Here

11. Funds  A “package” of stocks and bonds monitored by a fund manager  Ex. mutual funds, index funds, hedge funds  Varies in size, investing strategy, and level of risk Image Here

12. Analyst Teams  Head Analyst Applications are now OPEN – speak to Jack w/ questions  The successor to the Kay Intramural  Healthy competition between club members  Emphasis on TEAMWORK, similar to real-life fund/analyst teams  Each team will be assigned a sector and will pick a company to analyze in that sector  If a proposal is approved by the club, the company will be bought into our real-cash portfolio Image Here

13. Stock Contest  Virtual portfolio of $50,000  NYSE is open on the contest this year, due to popular demand  Prizes of senior (Gr.11 & 12) & junior (Gr.8 - 10) winners  Detailed instructions on the website under resources.  Great place to practice picking stocks before contributing ideas to your intramural team! Image Here

14. Minutes Team  If interested, see Jimmy afterwards or email jimmy.teng2016@stgeorges.bc.ca  Team of 5-10.  Will undergo training by Ms. Kudryk.  Integral part of the club, great way to contribute and develop new skills – just be willing to learn!

15. Thank You!  Next meeting: Friday, Oct 16 th  Learning Commons  1:20PM sharp  Special Guest Speaker –  Woon Ai Tsang  VP Portfolio Management, RBC Dominion Securities.

16. And Remember… “An investment in knowledge… pays the best interest.” - Benjamin Franklin