1. Investing Continued

2.  A stock is a share of a stock  It entitles the buyer to a certain part of the future profits and assets of a corporation selling the stock  You become part owner of a corporation  When you purchase a stock you get a stock certificate

3.  Stockholders are owners of a stock  They make money from the stock in 2 ways

4.  1. Dividends- the money return a stockholder receives on the amount he or she originally invested in the company  Paid only when a company makes a profit  2. Sell the stock  You make money by selling it for more than what you paid for it  You buy stock hoping that the price will increase so they can sell it for a profit

5.  Stocks are bought and sold through brokers  A broker is a person who acts as a go- between for buyers and sellers  Largest stock market is the New York Stock Exchange (NYSE)  2 nd largest is the American Stock Exchange (AMEX)  More than 70% of stocks are on these 2 exchanges

6.  Stocks must be listed to be sold on all of the exchanges  To be on the stock market:  Corporation must be in good financial condition  Must engage in legal business  Most are larger corporations

7. -Most stocks can be sold on the National Association of Securities Dealers Automated Quotations (NASDAQ) -Stocks are not traded in a specific place -Brokerage firms hold quantities of shares they buy and sell for investors -Stocks are from smaller, lesser known companies