What is a stock?
a share of ownership of a company
stock
WMT
Walmart
What does a stock quote include?
The quote normally includes information such as the name of the company, the ticker symbol, the price, the day’s high and low prices, and the trading volume.
This concept means that investors want to earn a higher return on their portfolio than the S&P 500.
“beat the market.”
Apple has approximately 5.575 BILLION shares outstanding, so if you owned 100 shares of Apple, you would own ____________% of the company.
0.00000179%
AAPL
Apple
What does a Stock chart show?
Stock charts show how the price of the stock has moved over time
What does it mean to make sure to pick a variety of stocks in different industries.
to “diversify”
This stock generally gives one vote at shareholder meetings for every share owned.
Common stock
F
Ford
Companies that are consistently profitable often pay out part of their earnings to shareholders. What is this called?
This is called a dividend.
To “diversify by sector” means?
To “diversify by sector” means that you would split your investments across companies based on the type of business they do; “Energy” companies would be oil producers, electricity companies, and companies that specialize in transporting materials needed for energy production. “Manufacturing” companies are firms that build everything from toys to cars to equipment to airplanes.
These stock holders are entitled to be paid first if a company goes bankrupt and all the assets are sold off.
Preferred stock holders
HOG
Harley Davidson
What is the price called that is the highest price a buyer is willing to pay for the stock?
The Bid Price
What is Stock Diversification?
This is the most basic type: just making sure you don’t have too much money in any one stock. For example, if you want to put 10% of your money in the banking sector, that doesn’t mean you should put 10% of your money in Bank of America. You should have a few bank stocks in case one of your bank stocks is poorly managed and it goes bankrupt.
What is it called when a private company decides to “Go Public”, and issues shares of stock for anyone to buy?
Initial Public Offering, or IPO
KO
Coca-Cola
What is it called that means the lowest price a seller is willing to sell the stock.
the Ask Price
When you own a variety of investments like real estate, stocks, bonds, gold/silver and cash
Asset Allocation