An overview of key concepts that serve as a basis for studying deeper into the industrial expansion of USA

1. (1860-1900)
Mrs. D. Hedges
U.S. History

2. Economic Principles, Concepts, and Terms

3. an economic system in which
investment in and ownership of
the means of production, distrib
ution, and exchange of wealth
is made and maintained chiefly
by private individuals or corpor
ations, especially as contrasted
to cooperatively or stateowned means of wealth.
(dictionary.com)

4. • Means of Production:
Labor
Requires a series
of means of production.
Means of productionWhat is needed to make
a product. Products are
then sold at market to
make a profit.
Resources
Profits generate more money, or capital.
Capital

5. Food
Peace of
Mind
Water
Exercise
Good
Relationships
Work
(as a means to
obtain money)

7.  Types



Single Ownership
Partnership
LLC- Limited Liability Company



of businesses
Functions as a separate person
Owners are members which do not have to pay
out of their pocket if anything goes wrong.
Corporation

a company or group of people authorized to act
as a single entity (legally a person) and
recognized as such in law.

8.  Corporations

Issue stock to raise money






It declares its aim to offer a certain amount of shares
(pieces) of stock for sale
Investment bank steps in to sell the stock, for a price
People buy the shares of stock from the investment bank
Corporations use money to improve their sales, or
grow their operations.
Stock Market- Place where you buy and sell shares.
What’s in it for the investor?


Dividends
Sell at a higher price if the company gains value

9. 
Initial investment

$2,000


Incorporated



Initial investment

Obtained by saving up
In time, it was
successful. Chustra
wants to grow.


Sold stock at $200 a
share
In time shares multiply
in value
Investors hold shares of
$20,000 each
SUCCESS!!
$2,000


Obtained by saving up
In time, it was
successful. Chustra
wants to grow.

Incorporated



Sold stock at $200 a
share
In time shares decrease
in value
Investors hold shares of
$20
BANKRUPCY!!

11. Recent news from CNN.com

12. 
Create a monthly
budget

It has to include:




Rent or mortgage
Car loan payments
Utilities (water, electricity)
Credit Card payments












Research the stock
market

Look for market closing
rates today


$900 in credit + 24% APR
Student Loan Payments
Phone Bill
Internet Bill
Cable TV
Health Insurance
Money for clothes
Money for groceries
Money for Gas
Money for Entertainment
Savings and 401K/IRA/CD

What companies gained
the most value?
What companies lost
value?
Which would you invest
on?