1. The Stock Market
And exchange

2. Stock Market stock exchange
Actual building where publicly held shares are traded
Locations in Canada:
Toronto, Montreal, Vancouver, Winnipeg, Calgary

3. Stockbrokers Is an agent for all transactions with stock exchanges
Trading done through internet

4. David Ricardo Rule:
Investors react to bad news by under valuing certain stocks and to good news by overvaluing them.
It is a risk.

5. Mutual funds More passive investment Gets managed for you by a manager
Lower risk

6. Nasdaq National Association of Securities Dealers Automated Quotation
One of the largest stock markets in the world
No central location for trading, brokers acting on behalf of clients place orders with Nasdaq brokers called market makers

7. General Trend Indicators
Stock exchanges use indexes to track patterns in stock prices
The dow
S&P/TSX
Nasdaq

8. Dow Jones Industrial average (the Dow)
Most popular
Calculated daily
Based on the closing prices of 30 blue chip (safe and stable) American corporations traded on NY Stock Exchange (representing all key areas of uSA economy)

9. Dow cont’d Is considered a mirror of the stock market as a whole
If dow goes up 5%, safe to assume that the entire NYC Stock Exchange going up 5% too
Can be used to track patterns in stock prices on NY Exchange

10. S&P/TSX composite index
Canadian
Changes in this index believed to mirror what happening in Toronto Stock Exchange
Can be used over time to track patterns in stock price changes and assess performance of particular stock to others

11. Nasdaq composite Index
Electronic network that functions as a stock market for over 4100 companies, with many technology companies listed . Its index is an indicator of its daily activity.