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
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
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
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
How are stocks evaluated? Private Evaluated by investment banks and other analysts Public Supply and demand of shares determines price
Three Types of Equity Common Stocks Preferred Stocks Bonds Image Here
Common Stocks Most common form of equity What our club deals with Part ownership of the company Can pay DIVIDENDS Image Here
Preferred Stocks Lower risk for investors Guaranteed dividends at regular intervals Trades at stable price No voting rights Image Here
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
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
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
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
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 ) winners Detailed instructions on the website under resources. Great place to practice picking stocks before contributing ideas to your intramural team! Image Here
Minutes Team If interested, see Jimmy afterwards or Team of Will undergo training by Ms. Kudryk. Integral part of the club, great way to contribute and develop new skills – just be willing to learn!
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.
And Remember… “An investment in knowledge… pays the best interest.” - Benjamin Franklin