1. SS.8.FL.5.3Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the nosiness is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money that have invested.

2.  Stocks are a way to own pieces of big companies. When you invest, you become a shareholder. Think of a company you know and imagine owning some of their stock. Now imagine earning some of the money they earn!

3.  A stock in company called a share  A share is a piece of a company  A share’s value, or share price, rises and falls based on how much people will pay for a share.  People will pay money for the stock if they think the company will be successful. If it is, its stock will increase in value.

4. Sometimes the company will also pay its investors a dividend. That’s when the company pays the shareholders a part of its profits.

6. The idea behind investing is to pick companies that you think are going to grow and increase in value.

7. The trick of stock market investing is to buy shares when the price is low, and sell them when the price is high. That’s how you make money on your money!

8. This is a sample stock market listing that you might see in the newspaper or online: A Stock symbol is an abbreviation of the company’s name (usually about 4 letters) DIV= a dividend which is part of the company’s profit that is paid to shareholders. Not all companies pay dividends. LAST= the current price per share of the stock CHG= the change in the price of the stock from the previous day (may be up + or down -_

9. When you invest in a stock, you are assuming a risk. If the company does well, you will make money (PROFIT). If the company does not do well, you may lose money (LOSS). What makes an investment risky? Lots of things — and sometimes they have nothing to do with the company itself. World events and trends can influence the price. So can government taxes and policies. Even consumers’ and investors’ optimism about the future of the economy can affect overall prices. The Dow Jones and the NASDAQ stock are 2 indexes. They go up and down to reflect stock prices moving up and down. The NASDAQ stocks are mostly in technology, while the Dow Jones includes stocks of very big U.S. companies across many industries. When you see that either the Dow or the NASDAQ is up or down, it means, in general, that a number of popular stocks are either going up or down in price.

10. When you sell a stock for more money than you paid for it, you make a PROFIT. In the financial world, this profit is called a CAPITAL GAIN. Capital refers to the money you started with and the profit you made is the gain. If you sell a stock for less than you paid for it, you lose money. In the financial worlds, this is called a CAPITAL LOSS.

11. Information courtesy Hands on Banking In a few minutes you will be taking an online quiz covering the ideas presented in this PowerPoint presentation. If you have any questions regarding the content presented, pleas raise your hand and ASK NOW!