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3 -  Investments - Stocks Mar 9
 

3 - Investments - Stocks Mar 9

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    3 -  Investments - Stocks Mar 9 3 - Investments - Stocks Mar 9 Presentation Transcript

    • Investing in Stocks 1
    • What are stocks? *When you purchase a stock (equity), you receive a piece of the  company.  *As one of the many owners of the company, you technically own a  piece of the company.  *A company raises money by issuing stock.  *The total value of stock held by the public is the company’s market  capitalization, or "market cap".   *A stock is considered a riskier investment than a bond (debt) and  thus requires a higher rate of return.  2
    • 3
    • Why Buy stocks? *Historically, equities (Stocks) have provided superior long­term  returns compared to cash and debt investments. Common share ownership in Canadian public companies offers  many potential benefits to investors, including:     * Capital appreciation     * Dividends     * Voting privileges     * Liquidity (shares can easily be bought or sold)     * Dividend tax credit and capital gains tax 4
    • Long Term Investment *Equities do typically fluctuate more in value.  *It’s important to take a long­term perspective when investing in equities.  5
    • How can you buy them? *The stock markets are places where buyers and sellers meet  to trade ­ in person or electronically.  *In Canada the Toronto Stock Exchange (TSX) is the largest  stock exchange. (Founded 1878) *Smaller market cap stocks trade on the TSX Venture  Exchange.  *In the US, the New York Stock Exchange (NYSE) (Founded  1792)and NASDAQ are the most important exchanges, and  are in fact the largest in the world. 6
    • Jeric wants to purchase 500 shares of Manitoba Telecom.  What will the shares cost him? http://cxa.marketwatch.com/tsx/en/market/quote.aspx?symbol=mbt 7
    • If Jeric's stock broker charges him a fee of 2% of the  order value, calculate Jeric's total cost. 8
    • Calculate Laura's total profit/loss for the following  transactions: Week 1: Laura purchases 100 shares of Astral Media  ACM.A  for $26.75/share. Her broker charges her 3%  commission. 9
    • Week 2: Laura sells her shares of Astral Media for  $31.25/share. Her broker charges her 3% commission. 10
    • Assignment #3 Questions 1 ­ 4 11