Stock Purchases

Stock Market History 1700’s - The government financed wars by selling bonds. Private banks raised money by selling ownership in different companies to raise money . 1792 - 24 large merchants met and created the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street to trade stocks and bonds.

Buying Stocks 1st: You need to know how much the stock costs. This price is constantly changing. 2nd: You need to determine how many shares (pieces) of stock you want to purchase. 3rd: You need to figure out how much you can spend on your total purchase. 4th: You have to do some math… Your budget ÷ price per share = number of shares

Finding Stock Prices By researching online, you can find the current selling price of a stock. For example, at http://finance.yahoo.com you can search for a company such as Hershey Co. (HSY) and look at how much the stock costs at the moment.

Stock Markets The main stock markets we purchase through in the U.S. are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation (NASDAQ) When searching for a stock, make sure it is on one of these markets

Determining Stock Cost Lets assume you have decided to buy Hershey (HSY). The price is $39.91. You decide you want to purchase 100 shares of the company. To find out how much the stock will cost you simply multiply the price ($39.91) by the number of shares (100) and you get: 39.91 · 100 = $3,991.00

Example: You want to buy 500 shares of Ford, at the current trading price of $12.41 per share. Cost of the Stocks: 500 · 12.41 = $6,205.00

Example: You want to buy 100 shares of Berkshire Hathaway at the current trading price of $100,400.00 per share! Cost of the Stocks: 100 · 100,400.00 = $10,040,000.00

Now it’s time to put what you’ve learned into action Complete the stock market worksheet by looking up stocks on the front, and picking out your own stocks on the back.