1. What is a Stock Market?

2. What is a Stock Market? Where do you go to buy CDs, jeans and books?
Just like a market for CDs, jeans and books, there is a market for stocks
People buy stocks to receive dividends and they anticipate increased stock price

3. What is a Stock Market?
Firms sell stocks to receive financial capital to use to expand the business
Sold through brokers
Person who acts as a go-between for buyers and sellers of stocks and bonds.

4. What is a Stock Market? Stock market
Mechanism whereby people who want to own shares of stock can buy from people who want to sell shares of stock

5. What is a Stock Market? Stockholder Asset
People who have invested in a corporation and own some of its stock.
Asset
All items to which a business or household holds legal claim.

6. What is a Stock Market? Capital Gain Capital Loss
Increase in value of an asset from the time it was bought to the time it was sold.
Capital Loss
Decrease in value of an asset from the time it was bought to the time it was sold.

7. What is a Stock Market? Dividend
Portion of a corporation’s profits paid to its stockholders.

8. What is a Stock Market? Common Stock
Shares of ownership in a corporation that give stockholders voting rights and a portion of future profits.

9. What is a Stock Market? Preferred Stock
Shares of ownership in a corporation that give stockholders a portion of future profits but no voting rights.

10. What is a Stock Market?
3 different stock markets
NYSE
AMEX
NASDAQ

11. What is a Stock Market? New York Stock Exchange (NYSE) Founded in 1792
About 2,800 companies listed
Dow Jones and S&P 500
Listed companies must have at least $100,000,000 in outstanding stock and trade an average of at least 100,000 shares per day
1,366 member seats

12. What is a Stock Market? American Stock Exchange (AMEX)
Founded after Civil War
More than 800 companies listed
Listed companies must have more than 500,000 shares outstanding and trade an average of more than 1,000 shares per day
807 member seats

15. What is a Stock Market?
National Association of Securities Dealers Automated Quotations (NASDAQ)
Founded in 1971
More than 3,700 companies listed
Consider the home of tech stocks
No physical location; trades done via computer network
Largest market in terms of stocks traded
No fixed number of seats

16. What is a Stock Market? Dow Jones Industrial Average (DJIA)
Standard and Poor’s 500 (S&P 500)
Securities Exchange Commission (SEC)
Regulatory agency of the stock market

17. What is a Stock Market?
Bull/bull market
A bull is an investor or analyst who believes that the price of a security or security prices in general will rise. A bull market is an extended period of rising prices for a security or the securities market in general.

18. What is a Stock Market?
Bear/bear market
A bear is an investor who believes that a security’s price or security prices in general will go down. A bear market is an extended period of price decline for a security or the securities market in general.

19. What Are Mutual Funds?
A mutual fund is an investment company that pools the money of many individuals to buy stocks, bonds, or other investments.
The investment club shares all profits and losses, thereby lowering overall risk to the investor.
February 24, 2019
What Are Mutual Funds?