Investing

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Student Investment Club
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Agenda

• Introductions
• Basic Terminology / Information
• Stock Simulation Contest
• Administrative
• Closing

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What is Investing?

• Making your money work for you.

Purchasing an asset or item (a security) with the
hope that it will generate income or appreciate
in the future. Source Investopedia.com
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Stocks

• A stock represents a percentage of ownership in a
  company.
• When you INVEST in STOCKS you buy shares of
  that stock.
• The percentage of the company you buy with each
  share depends on the total number of shares
  available (shares outstanding)
• Found via their TICKER SYMBOL
• 1 to 4 letters in length
• Ex. General Electric GE
• Apple, Inc. AAPL

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Stock Market

• Where shares of stock are traded
• Several different exchanges NYSE, NASDAQ, AMEX
• International Markets

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finance.google.com
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GE Stock Quote
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Other Sites to Try

• Yahoo! Finance (finance.yahoo.com)
• Morningstar (morningstar.com)

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Stock Brokers

• Can buy and sell shares of stocks for you
• Charge a commission each time you buy or sell
  (online brokers usually 3 to 12 per trade)
• Examples ETrade, TD Ameritrade, Scottrade,
  Charles Schwab, SogoTrade
• When you buy or sell you create an ORDER for a
  stock

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Order Types

• Market Buy/sell at the next available price
• Limit Buy/sell at any price better than what
  you specify
• Stop Sell if the price falls to a certain price
  or buy if a price rises to a certain price (AKA
  Stop-loss)

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Competition!

• 10,000
• Up to 5 different securities
• 3 Weeks (2 orders will be collected)
• Collect first BUY orders next week.
• Chance to buy or sell again Feb. 22.
• Winner determined by market values on March 1!
• MYSTERY PRIZE!!!!!

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Available Executive Positions

• Treasurer
• Director of Investment Simulations
• Director of Group Investments
• Director of Technology
• See us after the meeting!

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Questions?