SlideShare a Scribd company logo
1 of 27
INVESTMENT ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Importance of Savings & Investment
[object Object],[object Object],[object Object],Risk & Return Relationship
Investment Everyone Has! ,[object Object],[object Object],[object Object],[object Object]
What are my investment options?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],#1: Bonds
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Types of Bonds
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Investors Need to Examine BOND RATINGS
#2: CDs ,[object Object],[object Object],[object Object],[object Object]
#3: Stocks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
#4: Mutual Funds ,[object Object],[object Object],[object Object],[object Object],[object Object]
Comparison of Different Investments ,[object Object],[object Object],[object Object],[object Object]
Investment Decisions are Personal! ,[object Object],[object Object],[object Object],[object Object]
Most Important  Investment Advice ,[object Object],[object Object],[object Object],[object Object]
Financial Advisor Activity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wait…don’t corporations already raise money by issuing bonds? ,[object Object],[object Object],[object Object],[object Object]
The Stock Market
Investing in the Stock Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stock Exchange –   a market for buying and selling stock ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stock Exchange ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SEC ,[object Object],[object Object]
How Stock is Traded – DAY TRADING ,[object Object],[object Object],[object Object],[object Object]
How Stock is Traded – INSIDER TRADING ,[object Object],[object Object]
Stock Price Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Measuring the Performance of the Market ,[object Object],[object Object],[object Object]
Market Indices ,[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],Good vs. Bad Markets What type of market are we in now?

More Related Content

What's hot

International bond market
International bond marketInternational bond market
International bond market
Mayur Ingole
 
Introduction to portfolio management
Introduction to portfolio managementIntroduction to portfolio management
Introduction to portfolio management
Vinay Singhania
 
5138 5607 chapter 7 - single stock futures and stock index futures
5138 5607 chapter 7 - single stock futures and stock index futures5138 5607 chapter 7 - single stock futures and stock index futures
5138 5607 chapter 7 - single stock futures and stock index futures
vishalmoradiya
 

What's hot (20)

Mutual fund
Mutual fundMutual fund
Mutual fund
 
Types of international bonds
Types of international bondsTypes of international bonds
Types of international bonds
 
Presentation on Fundamentals of Investment
Presentation on Fundamentals of InvestmentPresentation on Fundamentals of Investment
Presentation on Fundamentals of Investment
 
International bond market
International bond marketInternational bond market
International bond market
 
Sebi guidelines for debentures
Sebi guidelines for debenturesSebi guidelines for debentures
Sebi guidelines for debentures
 
Investment Portfolio Management PowerPoint Presentation Slides
Investment Portfolio Management PowerPoint Presentation Slides Investment Portfolio Management PowerPoint Presentation Slides
Investment Portfolio Management PowerPoint Presentation Slides
 
Nse ppt
Nse pptNse ppt
Nse ppt
 
Introduction to portfolio management
Introduction to portfolio managementIntroduction to portfolio management
Introduction to portfolio management
 
5138 5607 chapter 7 - single stock futures and stock index futures
5138 5607 chapter 7 - single stock futures and stock index futures5138 5607 chapter 7 - single stock futures and stock index futures
5138 5607 chapter 7 - single stock futures and stock index futures
 
Mutual fund
Mutual fund Mutual fund
Mutual fund
 
Trends in foreign exchange reserve in india
Trends in foreign exchange reserve in indiaTrends in foreign exchange reserve in india
Trends in foreign exchange reserve in india
 
Financial planning 101
Financial planning 101Financial planning 101
Financial planning 101
 
Dow theory ppt
Dow theory pptDow theory ppt
Dow theory ppt
 
Pricing forward & future contracts
Pricing forward & future contractsPricing forward & future contracts
Pricing forward & future contracts
 
Broker
BrokerBroker
Broker
 
bond and its types
bond and its typesbond and its types
bond and its types
 
How To Start Investing In Mutual Funds | Mutual Fund Guide | Mutual Fund For ...
How To Start Investing In Mutual Funds | Mutual Fund Guide | Mutual Fund For ...How To Start Investing In Mutual Funds | Mutual Fund Guide | Mutual Fund For ...
How To Start Investing In Mutual Funds | Mutual Fund Guide | Mutual Fund For ...
 
Financial services
Financial services Financial services
Financial services
 
Money market
Money marketMoney market
Money market
 
Type of Mutual Funds
Type of Mutual FundsType of Mutual Funds
Type of Mutual Funds
 

Similar to Student investment notes

Investment student1
Investment student1Investment student1
Investment student1
Nick Allgyer
 
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptxSecurity-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
RashmiMangla1
 

Similar to Student investment notes (20)

Investment student1
Investment student1Investment student1
Investment student1
 
Unit #3 student1
Unit #3 student1Unit #3 student1
Unit #3 student1
 
Unit #3 student
Unit #3 studentUnit #3 student
Unit #3 student
 
Financial markets financial instruments
Financial markets financial instrumentsFinancial markets financial instruments
Financial markets financial instruments
 
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptxSecurity-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
Security-Analysis-and-Portfolo-Management-Unit-1-Dr-Asma-Khan.pptx
 
HCZ Stock Market FAQ Presentation
HCZ Stock Market FAQ PresentationHCZ Stock Market FAQ Presentation
HCZ Stock Market FAQ Presentation
 
BUSFIN_INVESTMENTS.pptx
BUSFIN_INVESTMENTS.pptxBUSFIN_INVESTMENTS.pptx
BUSFIN_INVESTMENTS.pptx
 
Invt Chapter 1 ppt.pptx best presentation
Invt Chapter 1 ppt.pptx best presentationInvt Chapter 1 ppt.pptx best presentation
Invt Chapter 1 ppt.pptx best presentation
 
Investment Analysis and Portfolio Management
Investment Analysis and Portfolio ManagementInvestment Analysis and Portfolio Management
Investment Analysis and Portfolio Management
 
MARKETABLE SECURITIES
MARKETABLE SECURITIESMARKETABLE SECURITIES
MARKETABLE SECURITIES
 
Investment management
Investment managementInvestment management
Investment management
 
Investment Strategies To Grow Your Income
Investment Strategies To Grow Your IncomeInvestment Strategies To Grow Your Income
Investment Strategies To Grow Your Income
 
Introduction to Finance - IIT Guwahati
Introduction to Finance - IIT Guwahati Introduction to Finance - IIT Guwahati
Introduction to Finance - IIT Guwahati
 
Mutual funds
Mutual fundsMutual funds
Mutual funds
 
Capital market & financial instruments
Capital market & financial instrumentsCapital market & financial instruments
Capital market & financial instruments
 
Investment Analysis 101 July 2011
Investment Analysis 101 July 2011Investment Analysis 101 July 2011
Investment Analysis 101 July 2011
 
GOOD DAY !.pptx
GOOD DAY !.pptxGOOD DAY !.pptx
GOOD DAY !.pptx
 
Understanding Markets by Jimmy Gentry
Understanding Markets by Jimmy GentryUnderstanding Markets by Jimmy Gentry
Understanding Markets by Jimmy Gentry
 
An Intro to the Financial Services Industry
An Intro to the Financial Services IndustryAn Intro to the Financial Services Industry
An Intro to the Financial Services Industry
 
Mutual funds
Mutual fundsMutual funds
Mutual funds
 

More from Nick Allgyer

Measuring the economy student
Measuring the economy studentMeasuring the economy student
Measuring the economy student
Nick Allgyer
 
Supply & demand pe student notes
Supply & demand pe student notesSupply & demand pe student notes
Supply & demand pe student notes
Nick Allgyer
 
Unit #2 student notes
Unit #2 student notesUnit #2 student notes
Unit #2 student notes
Nick Allgyer
 
Pe unit 1 student notes
Pe unit 1 student notesPe unit 1 student notes
Pe unit 1 student notes
Nick Allgyer
 
Unit 1 student notes
Unit 1 student notesUnit 1 student notes
Unit 1 student notes
Nick Allgyer
 
Measuring the macro economy student
Measuring the macro economy studentMeasuring the macro economy student
Measuring the macro economy student
Nick Allgyer
 
Unit 5 econ student
Unit 5 econ studentUnit 5 econ student
Unit 5 econ student
Nick Allgyer
 
Practical economics student1
Practical economics student1Practical economics student1
Practical economics student1
Nick Allgyer
 
Pe business organization & market structure student
Pe business organization & market structure studentPe business organization & market structure student
Pe business organization & market structure student
Nick Allgyer
 
Pe supply & demand student
Pe supply & demand studentPe supply & demand student
Pe supply & demand student
Nick Allgyer
 
Unit 4 na student version
Unit 4 na student versionUnit 4 na student version
Unit 4 na student version
Nick Allgyer
 
Pe unit #1 student
Pe   unit #1 studentPe   unit #1 student
Pe unit #1 student
Nick Allgyer
 
Israeli Palestinian Conflict Student Version
Israeli Palestinian Conflict Student VersionIsraeli Palestinian Conflict Student Version
Israeli Palestinian Conflict Student Version
Nick Allgyer
 

More from Nick Allgyer (20)

Unit 5 student
Unit 5 studentUnit 5 student
Unit 5 student
 
Measuring the economy student
Measuring the economy studentMeasuring the economy student
Measuring the economy student
 
Unit 4 student
Unit 4 studentUnit 4 student
Unit 4 student
 
Supply & demand pe student notes
Supply & demand pe student notesSupply & demand pe student notes
Supply & demand pe student notes
 
Unit #2 student notes
Unit #2 student notesUnit #2 student notes
Unit #2 student notes
 
Pe unit 1 student notes
Pe unit 1 student notesPe unit 1 student notes
Pe unit 1 student notes
 
Unit 1 student notes
Unit 1 student notesUnit 1 student notes
Unit 1 student notes
 
Measuring the macro economy student
Measuring the macro economy studentMeasuring the macro economy student
Measuring the macro economy student
 
Unit 5 econ student
Unit 5 econ studentUnit 5 econ student
Unit 5 econ student
 
Unit 5 econ
Unit 5 econUnit 5 econ
Unit 5 econ
 
Practical economics student1
Practical economics student1Practical economics student1
Practical economics student1
 
Unit 4 student
Unit 4 studentUnit 4 student
Unit 4 student
 
Pe business organization & market structure student
Pe business organization & market structure studentPe business organization & market structure student
Pe business organization & market structure student
 
Pe supply & demand student
Pe supply & demand studentPe supply & demand student
Pe supply & demand student
 
Pe intro to econ
Pe intro to econPe intro to econ
Pe intro to econ
 
Unit #1 student
Unit #1 studentUnit #1 student
Unit #1 student
 
Unit 4 na student version
Unit 4 na student versionUnit 4 na student version
Unit 4 na student version
 
Pe unit #1 student
Pe   unit #1 studentPe   unit #1 student
Pe unit #1 student
 
E unit #1 student
E  unit #1 studentE  unit #1 student
E unit #1 student
 
Israeli Palestinian Conflict Student Version
Israeli Palestinian Conflict Student VersionIsraeli Palestinian Conflict Student Version
Israeli Palestinian Conflict Student Version
 

Recently uploaded

Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
klaudiafilka
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
atedyxc
 
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
atedyxc
 
TriStar Gold- 05-13-2024 corporate presentation
TriStar Gold- 05-13-2024 corporate presentationTriStar Gold- 05-13-2024 corporate presentation
TriStar Gold- 05-13-2024 corporate presentation
Adnet Communications
 

Recently uploaded (20)

Amil baba powerful kala jadu in islamabad rawalpindi - Amil baba in lahore Am...
Amil baba powerful kala jadu in islamabad rawalpindi - Amil baba in lahore Am...Amil baba powerful kala jadu in islamabad rawalpindi - Amil baba in lahore Am...
Amil baba powerful kala jadu in islamabad rawalpindi - Amil baba in lahore Am...
 
amil baba in australia amil baba in canada amil baba in london amil baba in g...
amil baba in australia amil baba in canada amil baba in london amil baba in g...amil baba in australia amil baba in canada amil baba in london amil baba in g...
amil baba in australia amil baba in canada amil baba in london amil baba in g...
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
 
STRATEGIC MANAGEMENT VIETTEL TELECOM GROUP
STRATEGIC MANAGEMENT VIETTEL TELECOM GROUPSTRATEGIC MANAGEMENT VIETTEL TELECOM GROUP
STRATEGIC MANAGEMENT VIETTEL TELECOM GROUP
 
cost-volume-profit analysis.ppt(managerial accounting).pptx
cost-volume-profit analysis.ppt(managerial accounting).pptxcost-volume-profit analysis.ppt(managerial accounting).pptx
cost-volume-profit analysis.ppt(managerial accounting).pptx
 
Managing personal finances wisely for financial stability and
Managing personal finances wisely for financial stability  andManaging personal finances wisely for financial stability  and
Managing personal finances wisely for financial stability and
 
Economic Risk Factor Update: May 2024 [SlideShare]
Economic Risk Factor Update: May 2024 [SlideShare]Economic Risk Factor Update: May 2024 [SlideShare]
Economic Risk Factor Update: May 2024 [SlideShare]
 
Solution Manual For Financial Statement Analysis, 13th Edition By Charles H. ...
Solution Manual For Financial Statement Analysis, 13th Edition By Charles H. ...Solution Manual For Financial Statement Analysis, 13th Edition By Charles H. ...
Solution Manual For Financial Statement Analysis, 13th Edition By Charles H. ...
 
Retail sector trends for 2024 | European Business Review
Retail sector trends for 2024  | European Business ReviewRetail sector trends for 2024  | European Business Review
Retail sector trends for 2024 | European Business Review
 
Pitch-deck CopyFinancial and MemberForex.ppsx
Pitch-deck CopyFinancial and MemberForex.ppsxPitch-deck CopyFinancial and MemberForex.ppsx
Pitch-deck CopyFinancial and MemberForex.ppsx
 
DIGITAL COMMERCE SHAPE VIETNAMESE SHOPPING HABIT IN 4.0 INDUSTRY
DIGITAL COMMERCE SHAPE VIETNAMESE SHOPPING HABIT IN 4.0 INDUSTRYDIGITAL COMMERCE SHAPE VIETNAMESE SHOPPING HABIT IN 4.0 INDUSTRY
DIGITAL COMMERCE SHAPE VIETNAMESE SHOPPING HABIT IN 4.0 INDUSTRY
 
black magic removal amil baba in pakistan karachi islamabad america canada uk...
black magic removal amil baba in pakistan karachi islamabad america canada uk...black magic removal amil baba in pakistan karachi islamabad america canada uk...
black magic removal amil baba in pakistan karachi islamabad america canada uk...
 
FEW OF THE DEVELOPMENTS FOUND IN LESOTHO
FEW OF THE DEVELOPMENTS FOUND IN LESOTHOFEW OF THE DEVELOPMENTS FOUND IN LESOTHO
FEW OF THE DEVELOPMENTS FOUND IN LESOTHO
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
 
Black magic specialist in pakistan usa dubai oman karachi multan canada londo...
Black magic specialist in pakistan usa dubai oman karachi multan canada londo...Black magic specialist in pakistan usa dubai oman karachi multan canada londo...
Black magic specialist in pakistan usa dubai oman karachi multan canada londo...
 
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
 
1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdf
 
TriStar Gold- 05-13-2024 corporate presentation
TriStar Gold- 05-13-2024 corporate presentationTriStar Gold- 05-13-2024 corporate presentation
TriStar Gold- 05-13-2024 corporate presentation
 
Pension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdfPension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdf
 

Student investment notes

  • 1.
  • 2.
  • 3.
  • 4.
  • 5. What are my investment options?
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.

Editor's Notes

  1. Personal saving rate was 10% in 1980 while in 2005 less than 1 % 1. People save & put in a bank 2. Businesses borrow savings 3. New plants & equipment are produced 4.New jobs available (get income!) 5. New goods & service are created What do we do with our savings? Invest it! So that we can pay for education, house, car, retirement, rainy days or hard times
  2. Bond is like an IOU that pays interest (called a debt-related security because you are borrowing money) Buying and issuing bonds occurs in the bond markets
  3. U.S. gov’t bonds (Treasury bonds usually issued to borrow money for spending) – when federal gov’t needs money they issue bonds (they are always safe b/c gov’t can just print more money or raise taxes if needed to pay back the loan at maturity) CONSIDERED RISK FREE BUT ALSO HAVE LOW YIELDS (low interest rates) Savings – low-denomination ($50 – 10,000) and used for public works projects Other gov’t bonds – differ by lengths of maturity & investment amount Municipal Bonds – raise funds for public projects like building of schools, bridges, & highways Considered a little more riskier but are attractive b/c interest earned is exempt from federal income taxes & state taxes Corporate – higher risk but higher possible return on bond because of bankruptcy threat Risk of buying corporate bond varies according to financial health of the corporation Interest earned on municipal bonds is tax free at federal, state, and local level Savings Bonds are usually lower value investments ($50 to $10,000) Treasury Bonds are more expensive investments and are exempt from state/local taxes ONLY
  4. Standard & Poor’s & Moody’s publish bond issuers’ credit ratings Financial strength – ability to make future interest payments and its ability to repay the principal when the bond matures THE HIGHER (SAFER) THE RATING THE LOWER THE INTEREST RATE! Junk bonds – may give 12% interest compared to 8% of gov’t bond
  5. Usually you can choose amount (low amount of $) and set the maturity date (this is great for a person who needs $ at certain time) Fixed interest rate & usually higher than a normal savings account
  6. Stocks are shares of ownership, not debt security like a bond IN THIS CASE, WHEN CORP. ISSUE SHARES OF STOCKS THEY ARE NOT BORROWING MONEY, RATHER THEY ARE SELLING OWNERSHIP RIGHTS People sometimes invest in non-dividend paying stocks so they expect the price of the stock to rise as the company grows, therefore making their shares worth more over time RISKIER INVESTMENT THAN BONDS USUALLY BUT DEPENDS ON THE CORPORATIONS! Dividends are in the form of a dollar amount for each share owned (the more shares the higher the dividend) – usually holders reinvest dividends to buy more shares of stock then get more dividends over time! Also, the higher the profits, the higher the dividend! Not all companies issue dividends. Many use profits to reinvest in business, so people who invest in the non-dividend paying stocks are looking for capital gains
  7. A lot of times have minimum # of shares to buy, and sell at a Net Asset Value (NAV) - The Net Asset Value (NAV) is the current price of a mutual fund, which is calculated at the end of each business day. It is the total value of the fund's assets minus its liabilities and divided by the total number of shares outstanding. It is similar to a stock's closing price for the day. Stock or bond (debt-related) mutual funds where there is a collection of securities chosen & managed by a group of professional fund managers Shares are bought & sold just like a stock Diversification – investing in wide variety of financial assets so as to reduce the risk of poor performance of one Each mutual fund has different goals – stock funds for growth & income from dividends & value appreciation while bond funds offer lower risks & money market funds are short term with higher interest rates than savings accounts but no FDIC insurance Compare funds to market index like S&P or Dow, if not getting same returns then may be not managed well enough
  8. Capital vs. Money Market – capital is money lent for periods longer than a year and money market is less than a year Primary vs. Secondary Market – primary is not transferrable (can’t be sold off if needing money like savings bond) and secondary can be traded
  9. Young person saving for retirement can lose more than someone who is already retired (has more time to recover)
  10. “ Don’t put all of your eggs in one basket” = too great of a risk to only get one type of investment or put all money in one company with same maturity The goal is to reduce the risk of investing while still earning good retunrs
  11. A brokerage is a company that buys & sells stocks & bonds for investors (brokers help investors to make & carry out their investment decisions)
  12. lists the shares of more than 3,000 large companies, and has 1,400 seats or memberships with access to the trading floor. What is a Blue Chip stock? It is the stock of a large company that has a long history of stable operation and solid stock performance. A great example is General Electric.
  13. National Association of Securities Dealers Automated Quotation (many new high tech companies that usually do not pay dividends) Nasdaq is still today sometimes called an OTC market, but has become more of an organized exchange over time Investors buy directly from dealer/broker who searches for other dealers/brokers on the OTC market for the best price
  14. Federal agency created during Great Depression Makes sure firms release info in legal document, known as prospectus, that help investors to make informed decisions about whether to buy or sell What is the SEC? The Securities and Exchange Commission (SEC) is the government agency responsible for protecting investors by monitoring and regulating brokers, dealers, and the stock and bond markets in the U.S. They also make sure publicly-traded companies disclose the required business details to the public.
  15. Sometimes trade after seconds or minutes!
  16. What determines a stock's price? There are many factors that play into a stock's price. Overall, though, the price is determined by investors' perceptions of what the stock is worth. Important factors – how many shares are there? (small amount but profitable then worth more, if small & less profitable then shares are worth less) also expectations (if two companies are = but one has better future prospects then price is higher) Some of the biggest factors include:     How big and successful the company is (especially its earnings)     Recent company news     The state of the U.S. and world economies     Whether there is a bull or bear market     World events, whether good or bad
  17. When people say “The stock market rose today”…. A market index measures the change in value of a group of stocks, bonds, or other investments compared to a specific starting point What is the Dow Jones or the DJIA? The Dow Jones Industrial Average (often referred to as the "Dow") is an averaged number representing the values of 30 U.S. "blue-chip" stocks. The DJIA is the most well-known market indicator in the world and was created in 1896 by Dow Jones & Company, which is actually a publicly-traded company (DJ) on the New York Stock Exchange (NYSE). They produce many important business publications including The Wall Street Journal, Barron's, and several stock indexes. Started with only closing price of 11-12 stocks What is the S&P 500? The S&P 500 is a stock index published by Standard & Poor's. It measures 500 U.S. stocks that are supposed to be representative of the overall stock market (choose stocks that represent certain industries as components of the economy). It was created in 1957. uses NYSE, AMEX, & OTC
  18. Bull markets are good & have been most prevalent over bear market