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Common Stock Basics 1.  Definition : Stocks are  A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. 2.  Types :  Common Stock  (usually entitles the owner to vote at shareholders' meetings and to receive dividends).  Preferred  (generally does not have voting rights, but has a higher claim on assets and earnings than the common shares).  Class A : A classification of common stock that may be accompanied by more voting rights.  Class B: a classification of common stock that usually does not have as many or may not have any voting rights to elect officers to the Board of Directors of a Corporation. 3.  Represents  OWNERSHIP  in the Corporation.
Common Stock Basics 4.  Owners are also referred to as  shareholders  or  equity owners . 5.  Street name :  A brokerage account where the customer's securities and assets are held in the name of the brokerage firm, rather than you holding the stock certificate yourself. The customer is still listed as the real or beneficial owner.  6.  Board of Directors :  A group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues. Such issues include the hiring/firing of executives, dividend policies, options policies and executive compensation. Every public company must have a Board of Directors.
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Common Stock Basics ,[object Object],[object Object],[object Object],[object Object]
Other Common Stock Values ,[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation of Common Stock ,[object Object],[object Object],[object Object]
Valuation of Common Stock ,[object Object],[object Object],[object Object]
Common Stock as an Inflation Hedge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Stock as an Inflation Hedge: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Panic of 1987 ,[object Object],[object Object]
Stock Market Basics ,[object Object],[object Object]
Stock Market Basics ,[object Object],[object Object],Types of Markets
Stock Market Basics the OTC and Nasdaq ,[object Object]
Stock Market Basics the  AMEX ,[object Object],[object Object],[object Object]
Stock Market Basics Reading Stock Quotes Columns 1 & 2: 52-Week High and Low - These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day's trading.  Column 3: Company Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares .  For example, "pf" means the shares are preferred stock.  Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. If you don't know what a particular company's ticker is you can search for it at: http://finance.yahoo.com/.
Stock Market Basics Reading Stock Quotes Column 5: Dividend Per Share -  This indicates the annual dividend payment per share. If this space is blank, the company does not currently pay out dividends.  Column 6: Dividend Yield -  The percentage return on the dividend. Calculated as annual dividends per share divided by price per share.  Column 7: Price/Earnings Ratio -  This is calculated by dividing the current stock price by  earnings  per share from the last four quarters. For more detail on how to interpret this, see our P/E Ratio tutorial.  Column 8: Trading Volume -  This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add "00" to the end of the number listed.  Column 9 & 10: Day High and Low -  This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock.
Stock Market Basics Reading Stock Quotes Column 12: Net Change -  This is the dollar value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive.  Quotes on the Internet   Nowadays, it's far more convenient for most to get stock quotes off the Internet. This method is superior because most sites update throughout the day and give you more information, news, charting, research, etc.
Stock Market Basics ,[object Object],[object Object],Animals in the Market
Stock Market Basics Bear Markets ,[object Object],[object Object],[object Object]
Stock Market Basics Selling Short ,[object Object],[object Object],[object Object]
Investing in Equities Common Stock Investments
A.  Basic Characteristics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Stock as an Inflation Hedge ,[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Security Analysis ,[object Object],[object Object]
The Father of Fundamental Analysis: Benjamin Graham ,[object Object],[object Object],[object Object]
Ben Graham and Mr. Market : ,[object Object]
Ben Graham and Mr. Market Continued: ,[object Object],[object Object]
Graham’s Fundamental Investment Rules ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms (continued) ,[object Object],[object Object],[object Object],[object Object],1/n
The Graham Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Graham Model   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Graham’s 14 Investment Points   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Graham’s 14 Investment Points   8. Diversify among stocks and bonds. 9. Diversify among stocks. 10. When in doubt, stick to quality.  11. Use dividends as a clue for success. 12. Defend your shareholder rights. 13. Be patient.  14. Think for yourself.
The Influence of Philip Fisher ,[object Object],[object Object],[object Object],[object Object]
The Influence of Philip Fisher ,[object Object],[object Object]
The Influence of Philip Fisher ,[object Object],[object Object]
Contemporary Fundamentals: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contemporary Fundamentals: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Contemporary Fundamentals: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Lynch Maxim’s (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sir John Marks Templeton ,[object Object],[object Object],[object Object]
Sir John Mark Templeton ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Templeton’s 16 Rules ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investing in Equities   Technical Analysis
A.  Definition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Assumptions ,[object Object],[object Object]
Assumptions ,[object Object],[object Object]
Assumptions ,[object Object],[object Object]
Technical Analysis Assumptions: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Technical Charts: ,[object Object],Trading Days Dollar Price of Stock H L C
Types of Technical Charts: ,[object Object],Trading Days Closing Prices
B.  Approaches to Technical Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
B.  Approaches to Technical Analysis (continued ) ,[object Object],[object Object],[object Object],[object Object],[object Object]
B.  Approaches to Technical Analysis (continued ) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Approaches to Technical Analysis (Continued): ,[object Object],[object Object]
B.  Approaches to Technical Analysis (continued) ,[object Object],[object Object],[object Object],[object Object]
B.  Approaches to Technical Analysis (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B.  Approaches to Technical Analysis (continued) ,[object Object],[object Object],[object Object],[object Object]
B.  Approaches to Technical Analysis (continued) ,[object Object],[object Object],[object Object],[object Object]
Review Questions: Section 3 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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The Challenger.pdf DNHS Official Publication
 

Common stock basics

  • 1. Common Stock Basics 1. Definition : Stocks are A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. 2. Types : Common Stock (usually entitles the owner to vote at shareholders' meetings and to receive dividends). Preferred (generally does not have voting rights, but has a higher claim on assets and earnings than the common shares). Class A : A classification of common stock that may be accompanied by more voting rights. Class B: a classification of common stock that usually does not have as many or may not have any voting rights to elect officers to the Board of Directors of a Corporation. 3. Represents OWNERSHIP in the Corporation.
  • 2. Common Stock Basics 4. Owners are also referred to as shareholders or equity owners . 5. Street name : A brokerage account where the customer's securities and assets are held in the name of the brokerage firm, rather than you holding the stock certificate yourself. The customer is still listed as the real or beneficial owner. 6. Board of Directors : A group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues. Such issues include the hiring/firing of executives, dividend policies, options policies and executive compensation. Every public company must have a Board of Directors.
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  • 17. Stock Market Basics Reading Stock Quotes Columns 1 & 2: 52-Week High and Low - These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day's trading. Column 3: Company Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares . For example, "pf" means the shares are preferred stock. Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. If you don't know what a particular company's ticker is you can search for it at: http://finance.yahoo.com/.
  • 18. Stock Market Basics Reading Stock Quotes Column 5: Dividend Per Share - This indicates the annual dividend payment per share. If this space is blank, the company does not currently pay out dividends. Column 6: Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share. Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock price by earnings per share from the last four quarters. For more detail on how to interpret this, see our P/E Ratio tutorial. Column 8: Trading Volume - This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add "00" to the end of the number listed. Column 9 & 10: Day High and Low - This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock.
  • 19. Stock Market Basics Reading Stock Quotes Column 12: Net Change - This is the dollar value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive. Quotes on the Internet Nowadays, it's far more convenient for most to get stock quotes off the Internet. This method is superior because most sites update throughout the day and give you more information, news, charting, research, etc.
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  • 23. Investing in Equities Common Stock Investments
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  • 37. Graham’s 14 Investment Points 8. Diversify among stocks and bonds. 9. Diversify among stocks. 10. When in doubt, stick to quality. 11. Use dividends as a clue for success. 12. Defend your shareholder rights. 13. Be patient. 14. Think for yourself.
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  • 48. Investing in Equities Technical Analysis
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