Presented by: Mr. Zayas and Mr. Toda

Investing in Stocks

Investing in Stocks

Investing in Stocks - Facts: Fortunes have been made on the Stock Market. Fortunes have been lost on the stock Market. The Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout.

Investing in Stocks - Facts:

Fortunes have been made on the Stock Market.

Fortunes have been lost on the stock Market.

The Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout.

Investing in Stocks - Homework: Individual writing assignment. Worth up to 50 points. 350 words or more. What caused the Stock Market Crash of 1929? What were the effects in America? What lessons did we learn? How does this impact your investment strategy?

Investing in Stocks - Homework:

Individual writing assignment.

Worth up to 50 points.

350 words or more.

What caused the Stock Market Crash of 1929?

What were the effects in America?

What lessons did we learn?

How does this impact your investment strategy?

RUBRIC Criteria Description and Score 1 5 10 Sources Questionable sources were used and/or no references cited in the paper. Used citations in the paper but used few sources or all were not scholarly. Used at least 3 scholarly sources and cited these in the paper. Key Point Coverage Few or no applicable points and ideas were covered in the paper. Some important points were discussed but not as many as should have. All questions and key points were covered in the presentation. Clarity Difficult to understand the content of the paper. Can understand some of the ideas and concepts written. All ideas were clearly presented – easy to understand and interesting. Spelling 5 or more misspelled words. 1 or more misspelled words. 0 misspelled words. Timeliness Missed deadline by 2 days. Missed deadlines by 1 day. Did not miss deadline.

RUBRIC

Investing in Stocks: Remember, when you invest in Bonds you are lending money so this is a debt type investment. In contrast, when you buy stock, you become part owner in the company you are investing in. This is formalized by a printed form called a “stock certificate”.

Investing in Stocks:

Remember, when you invest in Bonds you are lending money so this is a debt type investment.

In contrast, when you buy stock, you become part owner in the company you are investing in.

This is formalized by a printed form called a “stock certificate”.

How do you make money on stocks? A lot of people are attracted by this type of investment but the risk of losing money is usually greater with stocks than with bonds. If the business makes a profit, then part of the money may be used to pay stock holders a dividend. A company must pay bondholders the rate of interest promised before paying any dividends on stock. If there isn’t enough money left or the company wants to use the profit on expansion then stockholders get no money.

How do you make money on stocks?

A lot of people are attracted by this type of investment but the risk of losing money is usually greater with stocks than with bonds.

If the business makes a profit, then part of the money may be used to pay stock holders a dividend.

A company must pay bondholders the rate of interest promised before paying any dividends on stock.

If there isn’t enough money left or the company wants to use the profit on expansion then stockholders get no money.

How do you make money on stocks? If the company goes out of business, bondholders get back all or part of their investment. In contrast, stock holders may lose all their money.

How do you make money on stocks?

If the company goes out of business, bondholders get back all or part of their investment.

In contrast, stock holders may lose all their money.

How are stocks priced? Let’s say I decide to sell 500 shares of stock in my own business at $100.00 per share and state that dividends will be paid quarterly. At the end of Quarter-1 I pay a 5% dividend on each share – that is $100.00 X .05 - $5.00 An article about my company comes out on the Maui News that says we made good profits. What do you think will happen to the demand on those shares?

How are stocks priced?

Let’s say I decide to sell 500 shares of stock in my own business at $100.00 per share and state that dividends will be paid quarterly.

At the end of Quarter-1 I pay a 5% dividend on each share – that is $100.00 X .05 - $5.00

An article about my company comes out on the Maui News that says we made good profits.

What do you think will happen to the demand on those shares?

How are stocks priced? (Continued) What do you think will happen to the price of my stock? This is how the market value of stock is calculated. The market value of stock is the price at which a share of stock is bought or sold in the stock market. Market value may be affected by the state of the economy. Market value of a particular stock may be affected by the perception of how well or how bad a company is doing.

How are stocks priced? (Continued)

What do you think will happen to the price of my stock?

This is how the market value of stock is calculated.

The market value of stock is the price at which a share of stock is bought or sold in the stock market.

Market value may be affected by the state of the economy.

Market value of a particular stock may be affected by the perception of how well or how bad a company is doing.

Types of Stock: Companies issue 2 main types of stock. Preferred Stock Common Stock

Types of Stock:

Companies issue 2 main types of stock.

Preferred Stock

Common Stock

Preferred Stock: Has priority over common stock for payment of dividends. Owners are paid first if profits are used to pay any stock dividends. Usually has priority on the return of amount invested if company goes out of business. Less risky than common stock. Dividends pay stockholders are limited to a set rate. Owners generally have no voting rights within the corporation.

Preferred Stock:

Has priority over common stock for payment of dividends.

Owners are paid first if profits are used to pay any stock dividends.

Usually has priority on the return of amount invested if company goes out of business.

Less risky than common stock.

Dividends pay stockholders are limited to a set rate.

Owners generally have no voting rights within the corporation.

Common Stock: Has no stated dividend rate. Common stockholders are invited to vote at annual meetings, one vote per share. If company profits are large, common stockholders may receive more in dividends than preferred stockholders. $100,000 worth of preferred stock $100,000 worth of common stock $ 20,000 profits 6% of interest for preferred stock = $12,000 How much is available to pay common stock owners?

Common Stock:

Has no stated dividend rate.

Common stockholders are invited to vote at annual meetings, one vote per share.

If company profits are large, common stockholders may receive more in dividends than preferred stockholders.

$100,000 worth of preferred stock

$100,000 worth of common stock

$ 20,000 profits

6% of interest for preferred stock = $12,000

How much is available to pay common stock owners?

Time for a Quiz

Time for a Quiz

Team Work Assemble in your groups Read Assigned Pages Work as a group and come up content for a 7-10 slide PowerPoint Presentation. Do not lose the content – you will need it.

Team Work

Assemble in your groups

Read Assigned Pages

Work as a group and come up content for a 7-10 slide PowerPoint Presentation.

Do not lose the content – you will need it.

Team Assignments – TEAM1 a b c d e f g H I Brittain Komoda Manager Kalena Duarte Time Keeper Brooke Higa Writer Poai Keahi Spokesperson TYPES OF SECURITIES, pg 479

Team Assignments – TEAM1

a b c d e f g H I

Brittain Komoda Manager

Kalena Duarte Time Keeper

Brooke Higa Writer

Poai Keahi Spokesperson

TYPES OF SECURITIES, pg 479

Team Assignments – TEAM2 j.n.t.s.u Jade Lauer Manager Kelsey Nakao Time Keeper Sheila Altura Spokesperson Clarissa Logsdon Spokesperson Amanda Parent Writer INVESTING IN CORPORATE BONDS, pg 480-481

Team Assignments – TEAM2

j.n.t.s.u

Jade Lauer Manager

Kelsey Nakao Time Keeper

Sheila Altura Spokesperson

Clarissa Logsdon Spokesperson

Amanda Parent Writer

INVESTING IN CORPORATE BONDS, pg 480-481

Team Assignments – TEAM3 Kaulana Kaili Manager/Leader Tavita Malafu Spokesperson Sean Sablas Time Keeper James Alu Note taker/writer TYPES OF GOVERNMENT BONDS, pg 481-483

Team Assignments – TEAM3

Kaulana Kaili Manager/Leader

Tavita Malafu Spokesperson

Sean Sablas Time Keeper

James Alu Note taker/writer

TYPES OF GOVERNMENT BONDS, pg 481-483

Team Assignments – TEAM4 Celina Harada Manager/Leader Justice Barut Spokesperson Mandielynn Richardson Time Keeper Janeen Tamura Note taker/writer INVESTING IN STOCKS, pg 483-484

Team Assignments – TEAM4

Celina Harada Manager/Leader

Justice Barut Spokesperson

Mandielynn Richardson Time Keeper

Janeen Tamura Note taker/writer

INVESTING IN STOCKS, pg 483-484

Team Assignments – TEAM5 Chelsea Manager/Leader Leroy Spokesperson Timmy Spokesperson Kahaku Time Keeper Natasha Note taker/writer SELECTING STOCK INVESTMENTS, pg 484-487

Team Assignments – TEAM5

Chelsea Manager/Leader

Leroy Spokesperson

Timmy Spokesperson

Kahaku Time Keeper

Natasha Note taker/writer

SELECTING STOCK INVESTMENTS, pg 484-487

Team Assignments – TEAM6 KMEV Kaleo Manager/Leader Victor Spokesperson Michael Time Keeper Evin Note taker/writer INVESTING WITH OTHERS, pg 487-489

Team Assignments – TEAM6

KMEV

Kaleo Manager/Leader

Victor Spokesperson

Michael Time Keeper

Evin Note taker/writer

INVESTING WITH OTHERS, pg 487-489

Now get to work!

Now get to work!