The Stock Market Miss Varee Period 0, 1, and 2 AP Economics

Overview If a company wants to grow—maybe build more factories, hire more people, or develop new products—it needs money.If a company wants to grow—maybe build more factories, hire more people, or develop new products—it needs money. It could get a loan from a bank. But then it would owe money.It could get a loan from a bank. But then it would owe money. By issuing stock, a company can raise money without going into debt.By issuing stock, a company can raise money without going into debt. People who buy the stock are giving the company the money it needs to grow.People who buy the stock are giving the company the money it needs to grow.

What exactly is a stock? Owning stock in a company means owning part of that company. Each part is known as a share. If a company has issued 100 shares of stock, and you bought one, you own 1% of that company. People who own stock are called stockholders or shareholders.

Standard and Poor’s 500  The S&P 500 is a stock market index containing the stocks of 500 Large- Cap corporations, all of which are from the United States.stock market indexLarge- Capcorporations United States

Dow Jones Industrial Average The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, INDP, or informally the Dow Jones or The Dow) is one of several stock market indices, created by nineteenth-century Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, INDP, or informally the Dow Jones or The Dow) is one of several stock market indices, created by nineteenth-century Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.NYSEDJIstock market indicesWall Street JournalDow Jones & Company Charles DowNYSEDJIstock market indicesWall Street JournalDow Jones & Company Charles Dow The average consists of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical— many of the 30 modern components have little to do with traditional heavy industry. The average consists of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical— many of the 30 modern components have little to do with traditional heavy industry.United StatesUnited States

NASDAQ [The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American stock exchange.American stock exchange It is the largest electronic screen-based equity securities trading market in the United States.electronic equity securities With approximately 3,200 companies, it has more trading volume per day than any other stock exchange in the world.

Historical and Recent Trends How is the market doing recently? How is the market doing recently? The Dow Jones peak was at 14,164 on October 9, As of November 12, 2008, it closed at (-4.73%). How has the market done in past year? How has the market done in past year? The Dow Jones has been extremely volatile. In 2008, On July 2, 2008, with record-high oil and gasoline prices well above $140 per barrel and $4 per gallon. On September 15, 2008, a wider financial crisis became evident when Lehman Brothers filed Chapter 11 bankruptcy. How has the market done in past ten years? The Dow Jones has been extremely volatile. In 2008, On July 2, 2008, with record-high oil and gasoline prices well above $140 per barrel and $4 per gallon. On September 15, 2008, a wider financial crisis became evident when Lehman Brothers filed Chapter 11 bankruptcy. How has the market done in past ten years? Lehman BrothersLehman Brothers How has the market done in past 10 years? How has the market done in past 10 years? In 1998, the Dow closed at about 8300 points. Today, it is at around the same rate. There is an overall gain of 0.4%.