the stock market. stock market game objective: to help get a better understanding of stock markets,...
TRANSCRIPT
![Page 1: The Stock Market. Stock Market Game Objective: To help get a better understanding of stock markets, how they work, what factors influence them, and their](https://reader035.vdocuments.us/reader035/viewer/2022072009/56649d945503460f94a7ba2b/html5/thumbnails/1.jpg)
The Stock Market
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Stock Market Game
Objective:• To help get a better understanding of
stock markets, how they work, what factors influence them, and their volatile nature
• learn some rudimentary, but important, approaches to picking stocks for an investment portfolio.
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Stock Market Game
What is a stock? • Stock is ownership of a company.
When you purchase stock or shares of a company your are becoming a part-owner of it.
• As owners of the company, shareholders are entitled to the earnings of the firm.
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Stock Market Game
What is a stock continued…• Some profitable companies pay out
some or all of these earning to shareholders as dividends, while other firms will re-invest the earnings to grow the company.
• The underlying assumption being the shareholder will enjoy greater earnings in the future if the company grows.
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Stock Market Game
Continued…• Investors will pick shares in companies
that are profitable (and are expected to stay profitable) or in companies that are expected to become profitable.
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• As an investor, you should move up the pyramid only after you have built a strong foundation.
• comfortable with the idea of risking your money. • While higher rates of return at the top are tempting, keep this in
mind: there is no guarantee that higher-risk investments will actually give you higher returns.
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Various Stocks You can invest in
• NASDAQ: National Association of Securities Dealers Automated Quotation System - The stock exchange that is concerned heavily with technology stocks
• The DOW JONES: Thirty of the largest corporations in America
• NYSE: The oldest and largest stock exchange in the US, with more than 1600 companies listed for trading.
• S&P 500: Short for "Standard & Poor's Corp." A well-known company that publishes credit ratings for certain bonds, a variety of financial reports covering other firms, and several stock indexes among other activities.; comprised of 500 top American companies; health of the US stock market.
• TSX:The largest stock exchange in Canada, traditionally home to a large number of natural resource companies.
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Stock Market Game
Discussion• What makes a company profitable?• Name some companies that have good
products (or popular products) and probably have good sales?
• If you wanted to own any of these companies, which would you choose (top three ranking, for example)?