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THE STOCK MARKET
•Why is it important to
understand how the stock
market works?
•What impact does the stock
market have on our overall
economy?
THE STOCK MARKET
WHAT DO YOU KNOW?
HOW THE STOCK EXCHANGE
WORKS?
What comes to mind
when you hear the
term “stock
market”?
What is the stock
exchange and how
does it work?
TICKER SYMBOL
TICKER SYMBOL
WHAT MAKES UP A "TICKER SYMBOL" IN THE
UNITED STATES?
• BETWEEN 1 AND 5
LETTERS OR
NUMBERS
• THE FIRST 3 LETTERS
OF A COMPANY'S
NAME
• BETWEEN 1 AND 5
LETTERS ONLY
• BETWEEN 1 AND 7
NUMBERS ONLY
HOW TO FIND A STOCK’S TICKER SYMBOL
• FINANCIAL WEBSITES
• QUOTES OR GET QUOTES LINK
• TICKER SYMBOL LOOKUP
WHY DID INVESTORS START USING TICKER
SYMBOLS?
• IT WAS FASTER TO MOVE NEWS
USING TELEGRAPHS WITH
SHORT NAMES
• INVESTORS LIKED TO USE "TEXT
SPEAK" TO COMMUNICATE IN
CODE
• TO CONFUSE "CASUAL"
INVESTORS AND KEEP TRADING
TO PROFESSIONALS
• IT MAKES IT FASTER TO LOOK
UP MULTIPLE COMPANIES AT A
TIME ON A COMPUTER
STOCK
Stock Stockholder or
shareholder
A share of
ownership in
a company
Owner of the
stock
Usually, a stockholder owns a very
small part of a company
STOCK RETURNS - DIVIDENDS
Dividend
s
Share of
profits
distributed
in cash to
stockholder
s
Stockhold
er may or
may not
receive
dividends
2.4.7.G1
© Take Charge Today – March 2018 – Let’s Talk Stocks – Slide 10
Ways Stock Values
May Change
1. The price per share or the dollar
value of the stock increases or
decreases
2. Stock Split occurs – shares
owned by existing stockholders
are divided into a larger number
of shares
3. A Merger of two companies
4. Dividends are paid
STOCK RETURNS – CAPITAL
GAINS
Market Price
Current price a
buyer is willing to
pay
Stocks sells for a
price higher
than what was
paid
Capital gain – unearned
income received from
the sale of an asset
above its purchase price
Stock sells for a
price lower than
what was paid
Stockholder will
lose money
How To Analyze A Single Stock
Now that you know what it means to
own individual stocks, let’s see how
some popular stocks are doing in the
market!
NYSE.COM
NASDAQ.COM
HOW DO INVESTORS CHOOSE
STOCK?
Stocks, and Why Prices
Fluctuate?
Passive Investors vs. Active
Investors
Active Investors: Picking a
Stock
Finding your Comfort Zone
http://finance.yahoo.co
m
TAKING STOCK PROJECT
TAKING STOCK PROJECT
CHOOSE A COMPANY
https://finance.yahoo.com/
COMPANY PROFILE
FIVE DAY PRICE
ONE YEAR PRICE
TREND
DATE COMPANY WHEN PUBLIC
https://www.google.com/finance?ei
=W9vCV-GeFYuMmAGJ9oyICg
RELATED
COMPANIES
Based on the
information you have
collected; would you
invest in the stock
you researched?
Why?

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