1. P604, 643 -644

3. 1. Pay debts 2. Raise money  Ex. To expand business

7.  Buy 1 share @ $30  Price rises to $50/sh.  You sell  Your profit = _____? ◦ $20  What if you’d initially purchased 100 shares? ◦ $2,000

11. 1/25 th or 4% (2011= $6.2B)

12. Facebook: 2.8 billion shares / 2, 800, 000, 000

13.  Past century (1900-2000)  Stock Market rate of return = 6%/yr  Investment of $1,000 = ______ ? ◦ earn $60 at yr’s end (on average)  Current average return for savings account = 1%/yr  Investment of $1,000 = _______ ? ◦ earn $10 at yr’s end  GUARANTEED

14. Stock Purchaser Brokerage Firm Corporation $$ Stock

15. 1. NYSE  The New York Stock Exchange  est. in 1792  Co.’s must meet size & profitability requirements to be traded on NYSE  Over 3,000 co.’s traded on NYSE

17.  NYSE PIT TRADING CLIP NEEDED

19. 2. NASDAQ  National Association of Securities Dealers Automated Quotations  est. 1971  Mostly tech. stocks  No floor for trading  Over 5,300 co.’s traded on this market

20. 3. AMEX  The American Stock Exchange  Est. 1842  originally known as NYCE (NY Curb Exchange)  700 co.’s traded on AMEX