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  1. 1. EDS Financial Trading & Technology Center “ Stock Market 101”
  2. 2. What we do <ul><li>Trade </li></ul><ul><li>Research </li></ul><ul><ul><li>Bloomberg </li></ul></ul><ul><ul><li>FactSet </li></ul></ul><ul><ul><li>StockVal </li></ul></ul><ul><ul><li>Reuters </li></ul></ul><ul><li>Teach </li></ul>
  3. 3. Investment Vehicles <ul><li>Stocks </li></ul><ul><li>Bonds </li></ul><ul><li>Treasuries </li></ul><ul><li>Derivatives </li></ul><ul><li>Currencies </li></ul><ul><li>Exchange-Traded Funds </li></ul><ul><li>Mutual Funds </li></ul><ul><li>REITS/Mortgage-Backed Securities </li></ul>
  4. 4. What is Stock? <ul><li>Part ownership in a company </li></ul><ul><li>Originally issued so that the company can raise large amounts of cash </li></ul><ul><li>Referred to as equity </li></ul><ul><li>Traded on exchanges (NASDAQ, NYSE, etc.) to promote liquidity </li></ul>
  5. 5. How to Pick Stocks <ul><li>High trading volume </li></ul><ul><li>New lows/highs </li></ul><ul><li>In the news </li></ul><ul><li>Stock screeners </li></ul><ul><li>Call your broker </li></ul><ul><li>Whatever interests you! </li></ul>
  6. 6. Where to Look for Information <ul><li>www.investopedia.com </li></ul><ul><li>Yahoo! Finance </li></ul><ul><li>Wall Street Journal </li></ul><ul><li>Business Week </li></ul><ul><li>Data Feeds (Bloomberg, FactSet, etc.) </li></ul><ul><li>Company Websites (Investor Relations) </li></ul><ul><li>Companies’ 10Qs/10Ks </li></ul>
  7. 7. I found one! So now what? <ul><li>Do your homework (Due Diligence)! </li></ul><ul><li>“ Paper trade” before investing real money </li></ul><ul><ul><ul><li>http:// simulator.investopedia.com / </li></ul></ul></ul><ul><ul><ul><li>http://www.youngmoney.com/stock_market_game/ </li></ul></ul></ul><ul><ul><ul><li>http:// www.google.com /Top/Business/Investing/Games/ </li></ul></ul></ul><ul><li>Consult a professional </li></ul><ul><li>Bottom Line: Educate yourself! </li></ul>
  8. 8. How to Purchase Stock <ul><li>Online Brokerages </li></ul><ul><ul><li>Scottrade </li></ul></ul><ul><ul><li>Charles Schwab </li></ul></ul><ul><ul><li>E*Trade </li></ul></ul><ul><ul><li>Ameritrade </li></ul></ul><ul><ul><li>Lowtrades </li></ul></ul><ul><ul><li>TD Waterhouse </li></ul></ul><ul><li>Traditional Brokerages </li></ul><ul><li>Through Mutual Funds </li></ul>
  9. 9. Keep track of your investments <ul><li>Look at Charts </li></ul><ul><ul><li>Bigcharts.com </li></ul></ul><ul><ul><li>Stockcharts.com </li></ul></ul><ul><li>Watch for News/Press Releases </li></ul><ul><ul><li>From your company </li></ul></ul><ul><ul><li>About your industry </li></ul></ul><ul><ul><li>About politics/the economy </li></ul></ul><ul><li>Check the Newspapers </li></ul>
  10. 10. How to Read a Stock Table <ul><li>Columns 1 & 2: 52-Week High and Low </li></ul><ul><li>Column 3: Company Name and Type of Stock. </li></ul><ul><li>Column 4: Ticker Symbol </li></ul><ul><li>Column 5: Dividend Per Share </li></ul><ul><li>Column 6: Dividend Yield </li></ul>
  11. 11. How to Read a Stock Table (cont.) <ul><li>Column 7: Price/Earnings Ratio </li></ul><ul><li>Column 8: Trading Volume </li></ul><ul><li>Column 9 & 10: Day High and Low </li></ul><ul><li>Column 11: Close </li></ul><ul><li>Column 12: Net Change </li></ul>
  12. 12. What opportunities are available to me as a finance student at UT? <ul><li>Commercial Banking </li></ul><ul><li>Corporate Finance </li></ul><ul><li>Financial Planning </li></ul><ul><li>Insurance </li></ul><ul><li>Investment Banking </li></ul><ul><li>Asset Management </li></ul><ul><li>Real Estate </li></ul>

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