2. What are some of the
products/companies you like?
This is a good start for you to start looking to invest
your money.
Let’s read about Dameon
3. When you own stock you are a
shareholder
You get to see potential growth and a piece of the profit
to some of your favorite companies.
By buying stock you provide money to a company to
run the business and invest in its future.
As a shareholder:
The more stock you own the more of the company you
own
There is no guarantee that you will make a profit.
You might break even or lose money.
4. 2 Major Stock Exchanges
1. New York Stock Exchange (NYSE)
2. National Association of Securities Dealers Automated
Quotation System (NASDAQ)
The main difference is how trades are made.
(AMEX was bought out by NASDAQ in 1988)
5. NYSE
Is a physical market in NYC. Orders are placed through
a broker on the exchanges floor.
You offer to purchase (bid) is matched to a seller's offer
to sell (ask).
Both the bid and ask quote list the quantity of stock at a
certain price. Ex: 100 share @ $10.00 per share.
If the seller accepts the bid a trade is made.
You now own stock
6. NASDAQ
It is not a physical place
All trading is done through a telecommunications network of
investment companies
Your buy(bid) or sell(ask) order will be handled by an
investment company dealer who keeps an inventory of
securities to sell.
When your bid matches the ask quote, your trade is made.
When you want to sell stock, the trade is made when the
dealer buys at your ask quote.
7. Stock prices fluctuate
When a company looks promising, the value of the
stock might climb
More investors will want to own in it; demand pushes up
the price
When a company is struggling, the value of the stock
tends to fall
More shareholders want to sell their shares.
8. Factors that may affect stock
prices
What else can affect stock prices?
9. What companies would you
invest in?
//finance.yahoo.com/
Let us find their ticker symbol.
