This document provides an overview of investing and the stock market. It discusses different types of investments like stocks and bonds. It explains how the stock market works and lists some major stock exchanges. Key investing terms are defined, like bull and bear markets. Popular stock market indexes like the Dow Jones Industrial Average are also introduced. The document gives examples of famous investors like Warren Buffett and provides a basic introduction to finance-related careers and brokerage services.

1. Today we will learn some finance
Create a chart like this for the stock market:
What I know: Want to know: (?s) Learned
(end)
At least 2
At least 2
At least 3

2. Investing in the USA
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•
•
•
•
•
•
Stocks
Bonds
Stock Market
NYSE, NASDAQ
Dow Jones
Bull vs. Bear
Industries

3. Investing
• Brokerage Account
• Old School – Stock Broker
• Higher fees, but advice
• New School – DIY online
• Lower fees, little to no help

4. A stock broker at work
• Finance
degree
• Income:
$50,000 and
up
• Commission
per trade

5. Famous Investor
Warren Buffett (1930One of 3 Richest people
in the world ($52
Billion)
Successful investor
Earns only pays himself
$100,000/year
“hold investments”

6. 2 basic financial markets
&

7. Bonds
•
•
•
•
•
Government backed
Very Safe
Low risk
Low return
Loan for a time
• Some tax free!
• Corporations also

9. Stocks
• Ownership in a
publically
traded
corporation
• Issued to raise
capital
• Some pay
dividends
• Voting rights

10. Let’s try one
• $1,000 investment
• Someone name a large company

11. • Stock Market
• Place where
Stocks are traded
• Most famous:
NYSE
• Wall Street
• Others: NASDAQ,
• Nikkei
• London
• Hong Kong
• Chicago
Stock Exchange

12. Why do stocks change their price?
• Supply
• Demand
• Financial
data
• News
•
•
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IPOs
Pandora
Twitter
Facebook

13. New York Summer 2011

15. Stock Symbols
• Makes trading
easier
• EX: Disney = DIS
• Use
finance.google.com
to look them up
• Show a stock ticker

16. “Dow Jones”
• Dow Jones” –
average 30 top US
companies
• MMM, AXP, T, BA,
CAT, CVX, CSCO,
KO, DD, XOM,
GE, GS,HD, INTC,
IBM, JNJ, JPM,
NKE, MCD, MRK,
MSFT, PFE, PG,
TRV, UTX, UNH,
VZ,V, WMT, DIS

19. Why? Real income?

20. Bull vs. Bear Markets
• Bull Market
• Bear Market
• “Keynes’s
‘animal spirits’

21. Mutual Funds

22. Industries
• Field of business
• Stocks follow
others
• “Chinese
increase car
purchases”
• Tough times for
biotechnology

23. http://www.stockmarketgame.org/

24. The Stock Market Game
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•
•
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•
•
National competition for students
Teams compete, January – April
$100,000 to invest, another $200,000 margin
$15 fee per team, so we are 1 team
Groups of 3, each different industry
Oil/Energy, Tech/Entertainment,
Food/Restaurants, Finance/Banking,
Fashion/Retail
• 1 % commission
• Must by units of 100 shares (no google stock)

26. Other stock simulators
• Marketwatch.com (regular ninos)
• Updown.com ($1,000,000 play money, earn
real cash if you make good investments)

27. Quiz: This is Twitter’s stock ticker as of
Friday’s close (and its whole life as a stock)
1. What is Twitter’s stock symbol?
2. Where is Twitter’s stock listed?
3. Approx. when was Twitter’s IPO?
4. How many shares exist?
5. Has Twitter made a
profit yet? (EPS)
6. If I owned 100 shares on
Thursday, how much
more is my stock worth
in total on Friday?
7. Should Klein have
bought 100 shares on
the IPO?
8. Does Twitter have a
dividend?
9. What is its 52 high?

28. In your groups
• Find 4 stocks or funds for your industry
• For each:
1.Symbol, exchange, 52 week high/low, EPS
2.Company HQ, CEO, 2013 Profits
3.Price for 100 shares of this company
4.Positive or negative news story, explain, cite
source, not MLA
5.Why you think our class should buy this stock.
For example: Google, because their business
is growing, EPS is….. Future growth depends
on companies it owns.