Stock Market

1
Stock Market

• Introduction to the Stock Market

2
What is a stock?

• Partial ownership in a business
• Dividends Profits paid out to stock holders
  four times a year or re-invested into the company
• Types of Stocks
• Common Stocks people owning stock can vote for
  the directors of the company
• Example NW Natural Gas, GM
• Preferred Stock fixed dividends, no voting
  privileges
• Example Nike, McDonalds
• Other words used for stocks
• Equities
• Securities
• Shares

3
What is the difference between a mutual fund and
a stock?

• Mutual fund
• Investment through a broker into a fund that has
  multiple stocks in many companies
• Benefits
• Lower risk because you are diversifying your
  investment

4
Major Stock Markets

• New York Stock Exchange (NYSE)
• Wall Street
• National Association of Securities Dealers
  Automated Quotations (NASDAQ)
• Mostly technology stocks
• Automated

5
How do I purchase stock?

• Brokerage House
• Full Service Brokers
• Dean Witter, Merrill Lynch, Prudential Bach
• Discount Brokers
• Charles Schwab, Ameritrade, eTrade

6
Reading Stock Pages
http//finance.yahoo.com/q?sNKE
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Major Stock Markets

• New York Stock Exchange (NYSE)
• Wall Street

8
Major Stock Markets

• NASDAQ
• National Association of Securities Dealers
  Automated Quotations
• Mostly Technology Stocks

9
General Terms

• Earnings per share Amt of profit each share is
  entitled
• Going Public Company plans to sell stock
• Share investors ownership of the profits,
  losses, and assets of a company
• Market Indices tracks performance of specific
  group or market of stocks

10
Market Indices

• Dow Jones index of 30 Blue Chip US stocks of
  industrial companies (financial, computer, retail
  companies)
• NYSE New York Stock Exchange tracks the
  movements of all common stocks
• Nasdaq Tracks performance of 100 of the largest
  most actively traded stocks

11
Dow Jones

• Coca Cola
• Home Depot
• ATT
• American Express
• Bank of America
• Dupont
• GE

12
Nasdaq Stocks

• Amazon.com
• Apple
• Costco
• Comcast
• Google
• Dell