Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Exploring The Stock Market


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Exploring The Stock Market

  1. 1. Exploring the Stock Market A project for Fifth Graders at UPES Detroit, MI
  2. 2. What is a stock? <ul><li>A stock is a piece of a company. When you own one share of stock, you own one tiny piece of that company. You are a shareholder . </li></ul>
  3. 3. What kinds of companies have stocks? <ul><li>Companies that issue stock are called corporations . </li></ul><ul><li>Corporations come in all sizes. But they all have this in common: They are not owned by any one person. Every shareholder is an owner of that corporation. </li></ul>
  4. 4. Where can I buy stock? <ul><li>You must buy stock from a stock broker , a person that is licensed to sell stocks. </li></ul><ul><li>You can also buy stocks on the Internet through a brokerage , such as TD Ameritrade or E*trade. </li></ul>
  5. 5. Where does my money go when I buy a stock? <ul><li>That’s simple… the corporation gets it! </li></ul><ul><li>It uses it to pay its expenses . </li></ul><ul><li>In return, you get to help make decisions for the company by electing its Board of Directors. The more shares you own, the more votes you get! </li></ul><ul><li>Some corporations also reward their stockholders by giving them payments every year…these payments are called dividends . </li></ul>
  6. 6. What happens when I don’t want to be a shareholder anymore? <ul><li>You sell your stock, through a broker. </li></ul><ul><li>You give up your shares in the corporation and get MONEY in return. </li></ul>
  7. 7. How do I make money from stocks? <ul><li>You don’t always make money! But here’s how it works… </li></ul><ul><li>You buy shares in the company for a certain price…called the asking price . </li></ul><ul><li>The asking price changes every day . It tells you how much a stock is worth. </li></ul><ul><li>Then… </li></ul>
  8. 8. …when it’s time to sell… <ul><li>You sell your shares in exchange for that day’s asking price! </li></ul><ul><li>If you sell your shares for more than you bought them, you make a profit . </li></ul><ul><li>If you sell your shares for LESS than you bought them, you incur a loss . </li></ul>
  9. 9. Can you give us an example??? <ul><li>Sure… </li></ul><ul><li>Let’s say you buy 100 shares of Microsoft on Tuesday, April 15. The asking price that day is $54.54. </li></ul><ul><li>How much do you have to pay??? </li></ul><ul><li>$5,454.00 </li></ul>
  10. 10. Then what??? <ul><li>You decide to sell your 100 shares two weeks later. The price that day is $63.23. </li></ul><ul><li>You receive $6323 (63.23 * 100) </li></ul><ul><li>How much did you make? </li></ul><ul><li>$6323 - $5454 = $869 </li></ul>
  11. 11. What do I have to do for this project? <ul><li>You start with an imaginary $10,000 </li></ul><ul><li>Create a portfolio by using that “money” to “buy” stock of 10 different corporations. </li></ul><ul><li>These corporations must come from different sectors. </li></ul><ul><li>Track the value of your portfolio (how much it’s worth) every week for six weeks. </li></ul><ul><li>At the end of May, determine your profit or loss. </li></ul>
  12. 12. Is that all? <ul><li>Along the way, you’ll complete math assignments that involve fractions, decimals, percents, and graphs. </li></ul><ul><li>You’ll also have the opportunity to “sell” stocks that aren’t doing well and “buy” new ones from time to time. </li></ul>
  13. 13. Terms you need to know <ul><li>Wall Street </li></ul><ul><li>New York Stock Exchange </li></ul><ul><li>“ The Dow” </li></ul><ul><li>Mutual Fund </li></ul><ul><li>NASDAQ </li></ul><ul><li>52-week high & low </li></ul><ul><li>Stock </li></ul><ul><li>Share </li></ul><ul><li>Profit </li></ul><ul><li>Loss </li></ul><ul><li>Corporation </li></ul><ul><li>Broker </li></ul><ul><li>Sector </li></ul>