1. Warm Up
What does it mean when a person has stock in a company?

2. Monday, March 23, 2015
Objective: Students will be able to assess ways to be a wise investor in the stock market and in other personal investment options. Purpose: Making investments can be risky, so it is important to know how to identify risks when making an investment.

3. Stocks Stock: a portion of ownership of a company
People who own stocks are called shareholders
By selling shares, corporations raise money to start, run, and expand their businesses.

4. Benefits of Stocks
Dividends: the profits by the corporation that are paid to the stockholders.
The size of the dividend depends on the amount of profit that the corporation made.
Capital Gains: the difference between a higher selling price and a lower purchasing price.
You could also have a capital loss

5. Risks of Stocks
Buying stock is a risky business because stockholders may lose a lot of money.
The more money that an investor pays for stock, the greater the risk of losing money.

6. Stock Exchanges Stock Exchange: market for buying and selling stock
Most American stock exchanges are in New York
Most newspapers publish the results of daily activity on the floor of major stock exchanges.

7. Buying Stocks Most people buy and sell stocks through brokers
Brokers buy and sell stocks for others in exchange for a small fee
Others will buy and sell stocks on the floor of a stock exchange
Some even buy and sell stocks online, although it is not as secure

8. New York Stock Exchange
Largest stock exchange in the world
Two indices
The Dow (The Dow Jones Industrial Average)
They take the 30 most representative companies in each industry and come up with an index number
S&P 500: Looks at 500 different companies as a measure of the overall stock market performance.

9. New York Stock Exchange
NASDAQ: stock index of technological companies
Stock indices tell us:
How well the economy is performing
How the economy will perform in the future
Stock prices change due to the performance of a company