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Lesson 1: What is Stock Investing?

               In this WealthLift video lesson, you will learn:


                    • What are stocks and why do they matter?
                    • Why do people invest in stocks?
                    • What do terms like ’Bid Price' and
                      'Market Volume' actually mean?




Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: What are stocks?

               A stock or sharerepresents ownership
               in a piece of a company.



                                                      The stock price of a company is the current
                                                      market price of a single stock in that
                                                      company.


           Stocks are traded on a stock exchange, such
           as the New York Stock Exchange (NYSE) or
           the NASDAQ.



Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: What are stocks?


              Buyers put                                                                         Sellers put in
              in a bid                                                                           an ask price,
              price, or the                                                                      or the price at
              price at                                                                           which they
              which they                                                                         are willing to
              are willing to                                                                     sell a stock
              buy a stock                                                                        for.
              for.



Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: What are some of the key terms?

               The number of stocks of a single
               company being traded over any period
               of time is known as its market volume.



              Market Capitalization = Current Stock Price x No. of Outstanding
                                           Shares



                                                     The market capitalizationof a company is
                                                     its total value, as determined by the stock
                                                     market.



Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: What are some of the key terms?




Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: Why do people invest in stocks?

                                                   Stocks can appreciate in price, creating capital
                                                   gains, or an increase in the value of your
                                                   assets, which grow your wealth.


                Companies generate earnings, or
                profits generated from providing goods
                and services.



                                                     Shareholders in companies are
                                                     compensated for their risk through a risk
                                                     premium.


Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Lesson 1: Why do people invest in stocks?
               $10,000 invested from 1964 to 2010: Stocks, Bonds, Savings,
               Gold
                                                                                                         Stocks:
                                                                                                         $714,925




                                                                                                         Gold:
                                                                                                         $405,057



                                                                                                         Bonds:
                                                                                                         $220,619


                                                                                                         Savings:
                                                                                                         $172,537




      [1]Historical Stock, Treasury bond data: Federal Reserve of St. Louis
      [2]Historical Gold price data: Kitco.com historical gold charts
      [3]Historical 6-month CD Savings rate data: Federal Reserve Historical 6-month CD interest rates



Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.
Congratulations – Lesson 1 Completed

               In the next WealthLift video lesson, you will learn:


               • What is an investing style and why do I need
                 one?

               • How much should I invest in the stock market?

               • Why should I invest in different sized companies?

               • What sort of companies should I invest in?




Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

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How To Invest Lesson 1: What is Stock Investing?

  • 1. Lesson 1: What is Stock Investing? In this WealthLift video lesson, you will learn: • What are stocks and why do they matter? • Why do people invest in stocks? • What do terms like ’Bid Price' and 'Market Volume' actually mean? Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 2. Lesson 1: What are stocks? A stock or sharerepresents ownership in a piece of a company. The stock price of a company is the current market price of a single stock in that company. Stocks are traded on a stock exchange, such as the New York Stock Exchange (NYSE) or the NASDAQ. Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 3. Lesson 1: What are stocks? Buyers put Sellers put in in a bid an ask price, price, or the or the price at price at which they which they are willing to are willing to sell a stock buy a stock for. for. Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 4. Lesson 1: What are some of the key terms? The number of stocks of a single company being traded over any period of time is known as its market volume. Market Capitalization = Current Stock Price x No. of Outstanding Shares The market capitalizationof a company is its total value, as determined by the stock market. Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 5. Lesson 1: What are some of the key terms? Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 6. Lesson 1: Why do people invest in stocks? Stocks can appreciate in price, creating capital gains, or an increase in the value of your assets, which grow your wealth. Companies generate earnings, or profits generated from providing goods and services. Shareholders in companies are compensated for their risk through a risk premium. Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 7. Lesson 1: Why do people invest in stocks? $10,000 invested from 1964 to 2010: Stocks, Bonds, Savings, Gold Stocks: $714,925 Gold: $405,057 Bonds: $220,619 Savings: $172,537 [1]Historical Stock, Treasury bond data: Federal Reserve of St. Louis [2]Historical Gold price data: Kitco.com historical gold charts [3]Historical 6-month CD Savings rate data: Federal Reserve Historical 6-month CD interest rates Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.
  • 8. Congratulations – Lesson 1 Completed In the next WealthLift video lesson, you will learn: • What is an investing style and why do I need one? • How much should I invest in the stock market? • Why should I invest in different sized companies? • What sort of companies should I invest in? Depictions of persons. product names and images modeled in this video are trademarks of their respective owners who do not endorse and are not associated or affiliated with WealthLift Inc. ©2011 WealthLift Inc. All Rights Reserved.