1. Pay attention, take notes and ask questions…how much can you make?
Investments
Stock Market
Pay attention, take notes and ask questions…how much can you make?

2. Industries
Investment – Savings vehicle used for retirement.
Examples – 401k, 403b, Roth IRA, Mutual Funds, Stocks (equities), Money Market
An industry is the type of business that the company operates…(ex. Construction,
food services, energy, technology)
industry -

3. Top Down Approach – Find the best performing industries and find the best performing stocks in those industries. -Portfolio- a collection of stocks or investments that you have purchased.
Diversify your portfolio – Invest in stocks that are from different industries.
“don’t put all your eggs in one basket”

4. Industries…cont! NIKE – CLOTHING PEPSI – BEVERAGE
HOME DEPOT – CONSUMERABLES
GENERAL MOTORS- AUTOMOBILES
MICROSOFT – COMPUTER SOFTWARE
APPLE- COMPUTER HARDWARE

5. EXAMPLE –e.g… NIKE Share – A piece of a company Example:
You buy 100 shares of Nike Stock at per share!
Total invested=5000$
You hold the stock for 2 years, and sell the 100 shares at 70.00!
Total sale=7000$
Investor makes 2000 dollars!

6. Ticker Symbol and Share Price!
Example on the web!
Nike – NKE
Pepsi – PEP
Home Depot – HD
General Motors - GM
Microsoft – MSFT
Apple – APPL
Why? To make it easier. Abbreviations are much easier to use.
Ticker Symbol
Share price can be very high or very low.
You can buy as many shares as you like.

7. Economic News – Good vs. Bad!
If unemployment rate, inflation numbers, and consumer confidence and spending numbers are good = Usually means good news for the Stock Market as a whole.
If a single company like DELL reports high quarterly earnings = usually means the stock price will increase.

8. Practice: Create the chart below and complete it: Total Gain/loss
Stock
TKR
Symbol
Buy Price
Shares
Purchased
Total
Invested
Sell Price
Nike
40.00 10
50.00
Facebook
80.00 20
77.00
Amazon
200.00 5
220.00
Delta
25.00
28.00

9. FEAR vs. GREED FEAR GREED Consumer Confidence down BULL Market
BEAR Market
Consumer Confidence down
Terrorist Attack
Bad economic forecast
Results in people pulling their money
= lower the stock price
BULL Market
-Consumer Confidence up!
-Economic Forecast Good!
-Strong Economic Numbers!
-Results in people putting more money in = higher stock prices

10. TWO TYPES OF STOCK GROWTH STOCKS Cheaper share price
Smaller companies with lots of room to grow
RISKIER!
VALUE STOCKS
Big Companies
Less risky
Share price is more expensive
Less room to grow

11. Two Major U.S. Markets New York Stock Exchange (NYSE)
NASDAQ - National Association of Securities Dealers Automated Quotations
Brought about because the NYSE was getting too large
Mostly comprised of technology stocks ex. MSFT (4 symbols)

12. Two Major Indexes DJIA – Dow Jones Industrial Average
(comprises of 30 well diversified companies)
S&P 500 – Standard and Poor’s 500
(comprises of 500 well diversified companies)

13. There are other investments besides the Stocks…
Things that you should consider when you get older and you begin saving for retirement!
401 k (403b)
IRA – individual retirement account
Mutual Funds
Life insurance
We are forced to pay into Social Security…but don’t rely on it…you have to prepare that it might not be available!

14. What Rules to Follow: Diversify your Portfolio
Where can we research?
Find the best performing industries
Within those industries, find the best performing stocks
E.g….Technology, MSFT!

15. Stock Market Project 7 parts / sections of the assignment
Each sections worth 25 points directions followed (25 pts) = 200 pts possible!
Directions to follow throughout the project!
Pay attention…take notes…and help each other out!
We will be going to the lab/library to complete some of the project in class!

16. Vocabulary Terminologies… You need to define all of the following terms…IN YOUR OWN WORDS! Complete Sentences!
Stock
Share
NYSE
Stock Split
NASDAQ
Diversify
S&P 500
Ticker Symbol
Bear Market
401 K
Bull Market
Capital Gain
DJIA
I.P.O – “initial public offering”
Mutual Fund
Portfolio
S.E.C – “securities exchange commission”
Stock Broker
Wall Street