Investments and the Stock Market

Size: px

Start display at page:

Download "Investments and the Stock Market"

Jodie Bryant
5 years ago
Views:

1 Investments and the Stock Market Making your money grow Bull Market- upward

2 This botched stamp sold in 2005 for how much money???

3 This 1909 Honus Wagnor baseball card is considered the rarest in the world. Sold in 2011 for

4 A pastel version of Edvard Munch's famous painting "The Scream Sold in 2012 for how much money???

5 ASSETS: items of value LIQUID ASSETS (can be CHANGED for CASH quickly) Bank Accounts Bonds Stocks Why does a person risk investing? NON-LIQUID ASSETS (must find a WILLING BUYER) Antiques Collectables Memorabilia Make more money faster!!

6 Business Growth & Expansion 1. Reinvest Profit 2. Mergers 3. GO PUBLIC!!! Slowest but least complicated way to grow Risky but huge potential to make money. Most complicated (gov t regulations) but potential to grow incredibly large

7 Advantages Removes all personal liability Receive money for company that doesn t have to be paid back Potential for growth much faster Worldwide exposure for company Why Go Public? (producer point of view)

8 Disadvantages Why Go Public? (producer point of view) Must reinvest profits or share through dividends High Government scrutiny and regulation Expensive and time consuming to file articles of incorporation

9 Why invest in stocks? (consumer point of view) POTENTIAL to earn more money than just putting money in a savings account. (banks may give 2% return guaranteed, stocks on average give 15% return not guaranteed)

10 Bear and Bull Represent In a bull market stock prices are expected to rise. In a bear market, stock prices are expected to fall.

12 Safe tips for investing in the Stock Market Buy low and sell high (make a profit). Earn dividend checks (bonus checks). Diversify your portfolio between low, medium and high risk stocks.

13 Investments When money is put into some tangible item or financial instrument for the purpose of increasing an original amount of money. Investments: Buying land, antiques, gold, cattle, bonds, cars, fine artworks, stocks or money that can be put into bank accounts.

Entering the Stock Market The New York Stock

14 Entering the Stock Market The New York Stock Exchange (the biggest store for trading stocks) is open from 9:30 am to 4:00 pm, Monday through Friday. Each opening and closing of trading is signified with the ringing of the bell. A new person gets the honor of ringing the bell every day.

15 You can buy your stocks (ownership certificates of a company) from a stock broker who will charge you a fee, or you can buy your own stocks online. You have to be 18 to buy stocks. Etrade.com

16 When you invest in stocks, you become a shareholder in the company. If the company is profitable, you will receive a dividend check. Many investors will buy more stocks with these checks, and increase their stock portfolio.

17 Liquid Assets Stocks and bonds (formal contract to repay borrowed money and interest on the borrowed money at a future time) are liquid assets. Liquid assets are easily sold when the investor is ready to sell. If you invest in an Alpaca farm, there may not be another investor who is ready to buy your farm when you are ready to sell.

It gave the company symbol (abbreviation), the current price and its increase or

18 The easiest way to track your stock is through the daily newspapers or online. Before modern technology, stock traders read ticker tape to watch stocks. It gave the company symbol (abbreviation), the current price and its increase or decrease based on the previous price. Stock tickers were connected using telegraph machines.

19 What causes an investment to go up or down in value? Most investments are determined by the simple economic principle of supply and demand. For most goods, the price of the item goes up as the supply gets lower. Scarcity causes prices to rise. Prices will fall as more of the product is available. This is an example of an inverse relationship. When one goes up, the other goes down. Supply Price

20 What Effects Stock Prices? Supply and Demand. Type of product produced. Success of company to compete in the market place. Company s bottom line- loss and profit statements.

21 Top Ten Most Expensive Stocks in priceline.com Apple Google Intuitive Surgical Mastercard Chipotle Autozone Washington Post CME Group Financial Amazon.com

22 The Coca-Cola Co. went public in 1919 at $40 per share. A single $40 share from 1919 is now worth over $5 million (with dividends reinvested into the company).

23 The Dow Jones Industrial Average An indicator of market prices, an average of 30 important stocks that are traded. If the Dow Jones does well, the market is said to have had a good day! NASDAQ and S & P 500 are also market indicators. marketindex/?symbol=%24us%3adji&ocid=enus_bingiaquotebtn

2 Basic Types of Stock. Stock Classifications

2 Basic Types of Stock. Stock Classifications The Language of the Market Family Economics & Financial i Education Why Learn About s The stock market is the core of America s economic system is a share of ownership in the assets and earnings of a company