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Stock Market.

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Presentation on theme: "Stock Market."— Presentation transcript:

1 Stock Market

2 Intro to Stock Market What are Stocks Making Money
What Stocks do I want to buy

3 What Are Stocks Common stock represents ownership in a corporation.
When you buy common stock, you are buying the corporation's factories, buildings, and products.

4 What Are Stocks Common stock is sold in shares. Each share of common stock represents the basic unit of ownership of the corporation.

5 What Are Stocks The market value of a stock is the price people are willing to pay for the stock at present. The market value is determined by the demand for the corporation's stock.

6 Intro to Stock Market What are Stocks Making Money
What Stocks do I want to buy

7 Making Money Price Appreciation Dividends

8 Price Appreciation Price appreciation
occurs when you sell your stock for more than you paid for the stock.

9 Price Appreciation As the company grows, your piece of the pie grows as well. If the company is successful and grows by 25%, the value of your shares will grow as well.

10 Price Appreciation Generally you want to buy low sell high
You do not make or lose any money until you sell

11 Making Money Price Appreciation Dividends

12 Dividends Dividends are paid out of a corporation's profit after taxes have been paid. The corporation can, however, retain part of the profit and reinvest it in the corporation.

13 Intro to Stock Market What are Stocks Making Money
What Stocks do I want to buy

14 What Stocks do I want to buy
Demand for a product is a company risk. If a company’s product or service is in high demand, the price of its stocks will generally rise. If a company’s product or service is not in demand, the price of its stocks will generally fall.

15 What Stocks do I want to buy
KO is coca cola

16 What Stocks do I want to buy
Where is KO’s stock price in comparison to its 52 week high and low? What is the P/E Ratio? – (current price divided by its earnings) You should have a P/E Ratio under 20 if the n/a appears this stock lost money last quarter.

17 What Stocks do I want to buy
What does the 6 month chart say? What about the 1 year? 5 year? Is this trending in the right direction?

18 What Stocks do I want to buy
The Dow Jones Industrial Average (DJIA), often called the Dow, is an index of 30 major corporate stocks listed on the New York Stock Exchange. The more diversified your portfolio is the less risk you have to lose money

19 What stocks do I want to buy
The more expensive the stock means I can buy more or less? How does that affect my profit? Find 10 stocks that are trending in the right direction


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