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Investments: Stocks Objectives:

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Presentation on theme: "Investments: Stocks Objectives:"— Presentation transcript:

1 Investments: Stocks Objectives:
Explain what the stock market is, the basics of how it functions, and how investors interact with a stock exchange. Explain the difference between a privately held and publicly owned company and how IPOs are conducted. Explain the basics of how investors make informed decisions, the strategies they use, and how to decide on which type of broker to use.

2 Opening Discussion- Turn to a student near you
Discuss what you think the stock market is, the basics of how it functions, and how investors interact with a stock exchange.

3 How the Stock Exchange Works

4 GROUP WORK: How the Stock Exchange Works review questions
How does selling shares on the stock exchange benefit companies?   How does buying shares in a company benefit an investor?   As an investor, what  is the risk involved with the stock exchange?

5 What is an IPO?

6 What is an IPO review questions?
What did Dave gain by conducting an IPO?   What did Dave lose by issuing stock in his food truck business? What are some other strategies Dave could have used in order to expand his business?  

7 Catching an IPO at the right time
Lets say we were able to purchase one stock from when it related its IPO of $22 a share back on December 12, 1980. Fast forward to today. Apple has had four stock splits. 1987 Two for One Stock Split 2000 Two for One Stock Split 2005 Two for One Stock Split 2014 Seven for One Stock Split How many shares do we own now? 56 shares Article on Apple IPO

8 Twitter’s IPO 2013 ipo-process Explain how the process flows from the investor at home to the New York Stock Exchange in order to buy stock in Twitter’s IPO

9 Public vs Private Companies
Read the following article ( private vs public companies. After reading the article, return to your groups to complete the Venn Diagram Leave room because we will complete a diagram together.

10 Wall Street Trader’s NYSE Tour

11 Wall Street Trader’s NYSE Tour review
What are the steps taken by a broker when he receives an order for a stock. How is a full service broker different from a discount broker (e.g. Etrade, Scott Trade) You may use the internet then reconvene with your group.

12 Full Service vs Discount Broker
Full-Service Broker  Brokerage Firms such as Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter and others. They provide a variety of services, such as personal advice, retirement planning and tax tips. They offer a wider selection of investment products such as derivatives and insurance, as well as access to the company's research. The investor will pay more money with compensation usually based on how much you trade, not the performance of your portfolio. Discount Brokers  Charges a reduced commission and do not provide investment advice. Fees are kept low because discount brokers offer fewer products. Its common for them to offer free research and educational tools to help you make better investing decisions. You can either execute a trade online automatically through a computerized trading system

13 Analysts trying to make predictions
October 2014 Friday, 11 Nov 2016

14 Analyst trying to make predictions review
Discuses in your small groups: 2-3 factors from the video/s and how the analysts predict they will impact individual stock prices After watching the video, someone could assume it’s always easy to predict stock prices if you pay attention to current events.  What makes that statement untrue?

15 What Is a Stock Market Index?

16 What Is a Stock Market Index? Review Question
What makes indexes useful for investors?

17 Understanding the basics of stock ownership
Go to my website and click on the link to Understanding the basics of stock ownership After reading the article, work in your group to discuss and answer the questions on the accompanying worksheet. We will discuss them as a class.

18 How Do You Make Money on Stocks?
Read the article on how to make money with stocks by CNN. The link is located on my website. Suppose you buy stock in Penny’s Pickles for $25 a share on Tuesday.  On Friday, the shares are each worth $27.50. What would be the benefit of selling on Friday?   Why might someone decide NOT to sell on Friday? If you sell all of your shares on Friday, will you still qualify for dividends at the end of the quarter?  Why or why not?  

19 Joining the Market Go to How the Market Works.com
Register with the website. Find E.O. Panthers and join the game Start researching on companies that you want to purchase


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