Presentation is loading. Please wait.

Presentation is loading. Please wait.

Buying, selling, trends, and rules. What is a stock? Why are stocks used by companies? Why do people buy stocks? What determines a stock’s price and value?

Similar presentations


Presentation on theme: "Buying, selling, trends, and rules. What is a stock? Why are stocks used by companies? Why do people buy stocks? What determines a stock’s price and value?"— Presentation transcript:

1 Buying, selling, trends, and rules

2 What is a stock? Why are stocks used by companies? Why do people buy stocks? What determines a stock’s price and value? Bear vs. Bull market

3 Way for businesses to raise capital Selling of shares of ownership in the company Individual buyers making an investment

4 Say our classroom is a company, and we want to raise funds We make our Initial Public Offering (IPO) of 100 shares Principle Smith buys 1 share of our offering Principle Smith now owns exactly %1 of our classroom company

5 Bull Stock prices are rising Companies are turning larger profits Investors are happy as their stock values rise The economy is growing The future looks good! Stock prices are falling Profits are falling Investors are unhappy as their shares are worth less Economy shows signs of weakness Future =  Bear

6 If you buy a share of Apple at 100 points and its value falls %25 to 75 points, your investment has DEPRECIATED

7 But if you bought a share of Apple after it had dropped to 75 and then it rose back up to 100, your investment would have gained in value This is what you’re trying to do! Finding an investment that can grow

8 Future performance of the company How will the market perform? Is the company sound (in terms of debt, management, financial basis, and liquidity) BOTTOM LINE: Will this company continue to grow and flourish


Download ppt "Buying, selling, trends, and rules. What is a stock? Why are stocks used by companies? Why do people buy stocks? What determines a stock’s price and value?"

Similar presentations


Ads by Google