EDS Financial Trading

1
EDS Financial Trading Technology Center

• Stock Market 101

2
What we do

• Trade
• Research
• Bloomberg
• FactSet
• StockVal
• Reuters
• Teach

3
Investment Vehicles

• Stocks
• Bonds
• Treasuries
• Derivatives
• Currencies
• Exchange-Traded Funds
• Mutual Funds
• REITS/Mortgage-Backed Securities

4
What is Stock?

• Part ownership in a company
• Originally issued so that the company can raise
  large amounts of cash
• Referred to as equity
• Traded on exchanges (NASDAQ, NYSE, etc.) to
  promote liquidity

5
How to Pick Stocks

• High trading volume
• New lows/highs
• In the news
• Stock screeners
• Call your broker
• Whatever interests you!

6
Where to Look for Information

• www.investopedia.com
• Yahoo! Finance
• Wall Street Journal
• Business Week
• Data Feeds (Bloomberg, FactSet, etc.)
• Company Websites (Investor Relations)
• Companies 10Qs/10Ks

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I found one! So now what?

• Do your homework (Due Diligence)!
• Paper trade before investing real money
• http//simulator.investopedia.com/
• http//www.youngmoney.com/stock_market_game/
• http//www.google.com/Top/Business/Investing/Games
  /
• Consult a professional
• Bottom Line Educate yourself!

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How to Purchase Stock

• Online Brokerages
• Scottrade
• Charles Schwab
• ETrade
• Ameritrade
• Lowtrades
• TD Waterhouse
• Traditional Brokerages
• Through Mutual Funds

9
Keep track of your investments

• Look at Charts
• Bigcharts.com
• Stockcharts.com
• Watch for News/Press Releases
• From your company
• About your industry
• About politics/the economy
• Check the Newspapers

10
How to Read a Stock Table

• Columns 1 2 52-Week High and Low
• Column 3 Company Name and Type of Stock.
• Column 4 Ticker Symbol
• Column 5 Dividend Per Share
• Column 6 Dividend Yield

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How to Read a Stock Table (cont.)

• Column 7 Price/Earnings Ratio
• Column 8 Trading Volume
• Column 9 10 Day High and Low
• Column 11 Close
• Column 12 Net Change

12
What opportunities are available to me as a
finance student at UT?

• Commercial Banking
• Corporate Finance
• Financial Planning
• Insurance
• Investment Banking
• Asset Management
• Real Estate