CPUSH 23 February 2015 To Do: -Bring textbook all week! -Research Paper 4 Pages: 3/4 EQ: What is the stock market and how can I invest wisely? Agenda: -Finish Nation Creation (If Needed) -Stock Market Notes -Invest in Stocks You will need 1 piece(s) of paper

Introduction Why do people start businesses?

Profit When you make money in business, it is called a profit. Mathematically: Profit = Revenue – Cost Revenue = all money generated by business Cost = all expenses incurred by business

How do you raise money to start a new business? Two Options: 1. Borrow money from a bank, called a business loan Must be paid back with interest 2. Sell ownership in the company No financial obligations

Stocks Selling ownership: You have other people give you money and they have a share in the profits (and losses) of the company. These ownership shares are called shares of stocks.

How Do You Make a Profit in the Stock Market? 1. Dividends: Usually businesses pay shareholders after making large profits Dividends can be issued as cash payments, as shares of stock, or other property 2. The Stock Market Sell your shares of a company through an exchange or broker The New York Stock Exchange (NYSE) is one of these markets.

Current market price: The price that you may purchase a share of stock at the time The amount the share of stock has risen or fallen since opening that day

After hours trading; price of share can rise or fall rapidly during this time due to major reporting Markets will close at 4PM Eastern Time! That is 1PM Pacific Time

The closing price the day before The price the stock opened at

The price per share and the amount of shares a buyer is willing to take The price per share and the amount of shares a seller is willing to sell

The volatility, or systematic risk, of the stock compared to the market: Greater than 1 means more risky than the market Equal to 1 means as risky as the market Less than 1 means less risky than the market

The date a company should release their earnings report The range of the price of the share either within a 24 hour or 52 week period

Volume indicates the amount of shared sold and in possession The amount of shares multiplied by the price of the share

P/E is the price earnings ratio whereby a stock is measured by its current market value to its per- share earnings. EPS is the earnings per share. Great indicator to how profitable a company is. Higher the number and lower the price per share makes for a great investment! Dividend and Yield: Price paid out per share per year. Shown in terms of a percentage.

Homework Fill out “Should I Buy This Stock?” sheet