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Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
Indexes, Dividends
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Indexes, Dividends

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  • 1. March 8, 2009
  • 2. <ul><li>Contest Reminder </li></ul><ul><li>Indexes </li></ul><ul><li>Dividends </li></ul><ul><li>Apple Presentation </li></ul><ul><li>Discussion </li></ul>
  • 3. <ul><li>http://www.biz.uiowa.edu/studorgs/hawktrade </li></ul><ul><li>Submit order forms by market open tomorrow </li></ul><ul><li>Remember: All short sales must be accompanied by protective stop </li></ul>
  • 4. <ul><li>Created as a way of evaluating overall performance of the stock market </li></ul><ul><li>May attempt to track overall market or a specific sector, e.g. Financials </li></ul><ul><li>Big Three: </li></ul><ul><ul><li>Dow Jones Industrial Average </li></ul></ul><ul><ul><li>S&P 500 </li></ul></ul><ul><ul><li>NASDAQ Composite </li></ul></ul>
  • 5. <ul><li>Price-weighted average of 30 largest and most widely held companies </li></ul><ul><li>NYSE: DJI </li></ul><ul><li>AKA “INDP”, “Dow 30”, or “The Dow” </li></ul><ul><ul><li>On TV – INDP = level of Dow </li></ul></ul><ul><ul><li>INDU = day’s change in Dow </li></ul></ul><ul><li>As of Friday: 6,626.94 </li></ul><ul><li>Highest close: 14,164.53 (Oct. 9, 2007) </li></ul>
  • 6. <ul><li>500 Large-Cap Companies </li></ul><ul><ul><li>Decided by Standard & Poor’s </li></ul></ul><ul><ul><li>Not necessarily the 500 largest, but most are in top 500 </li></ul></ul><ul><li>Ticker varies </li></ul><ul><ul><li>Google: .INX </li></ul></ul><ul><ul><li>Yahoo: ^GSPC </li></ul></ul><ul><li>As of Friday: 683.38 </li></ul><ul><li>Highest close: 1,565.15 (Oct. 9, 2007) </li></ul>
  • 7. <ul><li>Average of all common stock and similar securities traded on NASDAQ </li></ul><ul><ul><li>ETF’s, preferred stock, derivatives not included </li></ul></ul><ul><li>NASDAQ: .IXIC </li></ul><ul><li>Over 3000 components </li></ul><ul><li>As of Friday: 1,293.85 </li></ul><ul><li>Highest close: 5,048.62 (March 10, 2000) </li></ul>
  • 8. <ul><li>Can’t purchase indexes directly </li></ul><ul><li>Must purchase “index funds” </li></ul><ul><ul><li>Closed-end fund which attempts to match the performance of index </li></ul></ul><ul><ul><li>May own exact components of index (Dow 30) </li></ul></ul><ul><ul><li>Or a select few (NASDAQ) </li></ul></ul><ul><li>Several companies have etf’s </li></ul><ul><ul><li>SPDR, ProShares, iShares, etc. </li></ul></ul>
  • 9. <ul><li>Quarterly payment to all stockholders </li></ul><ul><li>How do I receive dividend? </li></ul><ul><ul><li>3 Important Dates: </li></ul></ul><ul><ul><ul><li>X-Date </li></ul></ul></ul><ul><ul><ul><li>Record Date </li></ul></ul></ul><ul><ul><ul><li>Payable Date </li></ul></ul></ul>
  • 10. <ul><li>X-Date </li></ul><ul><ul><li>AKA Ex-Dividend date, Ex-Date, X-Div date, etc. </li></ul></ul><ul><ul><li>Only need to own stock on this day to receive dividend </li></ul></ul><ul><ul><li>Could buy the day before and sell the day after </li></ul></ul><ul><ul><li>Two days before record date </li></ul></ul><ul><li>Record date </li></ul><ul><ul><li>All owners “of record” on this date receive dividend </li></ul></ul><ul><li>Payable date </li></ul><ul><ul><li>The day you actually receive the payment </li></ul></ul><ul><ul><li>Usually a month or so after record date </li></ul></ul>
  • 11. <ul><li>AKA Stock Splits </li></ul><ul><li>“ 2 For 1” split </li></ul><ul><ul><li>Receive 2 shares “for” every 1 you own </li></ul></ul><ul><ul><li>Price per share cut in half, number of shares double </li></ul></ul><ul><ul><li>Value stays the same </li></ul></ul><ul><li>“ 1 for 5” split (reverse split) </li></ul><ul><ul><li>Receive 1 share for every 5 you own </li></ul></ul><ul><ul><li>Price per share multiplies by 5 </li></ul></ul><ul><ul><li>Number of shares divided by 5 </li></ul></ul><ul><ul><li>Value stays the same </li></ul></ul>
  • 12. <ul><li>Other way to say it: </li></ul><ul><li>Company issued 50% stock dividend </li></ul><ul><ul><li>Equivalent of “3 for 2” split </li></ul></ul><ul><ul><li>You receive 50% more shares </li></ul></ul><ul><ul><li>E.G. if you owned 100 shares, 50% = 50 shares </li></ul></ul><ul><ul><ul><li>Now own 150 shares </li></ul></ul></ul><ul><ul><li>Does not affect value (more shares, lower price) </li></ul></ul><ul><li>100% stock dividend = 2 for 1 split </li></ul>
  • 13. <ul><li>Apple Inc., (NASDAQ: AAPL) formerly Apple Computer Inc., is an American multinational corporation which designs and manufactures consumer electronics and software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. </li></ul><ul><li>http://www.google.com/finance?q=aapl </li></ul>
  • 14. <ul><li>Pros </li></ul><ul><ul><li>Financially Secure Over 30 Billion in CASH </li></ul></ul><ul><ul><li>Leader in Innovation </li></ul></ul><ul><ul><li>Analyst suggest Apple is Overweight (Will out-perform market) </li></ul></ul><ul><ul><li>IPOD/IPHONE Halo Article </li></ul></ul><ul><ul><ul><li>Halo Effect---Consumers are purchasing other Apple Products because they like the IPOD/IPHONE </li></ul></ul></ul><ul><ul><li>Quality Products </li></ul></ul>
  • 15. <ul><li>Cons </li></ul><ul><ul><li>Slow Down in Consumer Spending </li></ul></ul><ul><ul><li>No Dividend for Past 14 Years </li></ul></ul><ul><ul><li>Steve Jobs is Ill- On Medical Leave </li></ul></ul>
  • 16. <ul><li>What Does Everyone Else Think? </li></ul>
  • 17.  

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