STOCKS
What are STOCKS?

Stock represents a
share of ownership

You are a shareholder of
the company

The more shares you
purchase, the higher
percentage of the
company you own
OWNERSHIP
The percent of a company that you own is calculated by
dividing the number of shares owned by the number of
shares of stock outstanding:
Example:
100,000 shares outstanding in CIT Corporation
You own 1,000 shares
((1,000/100,000)x100=1% of ownership
To make a difference in the company you must own a lot of shares!
The “PROCESS”

Company goes public
Only public companies offer
stock for sale
Why do companies go public?
Demand for product and
service is so great they need
more capital to expand their
business

IPO (Initial Public Offering)
First time stock is available to
the public (to buy)
Where are STOCKS listed?
STOCK EXCHANGES:
A platform (live, electronic, or both) for investors to
buy and sell stock with each other.
Three major US Stock Exchanges
1.
New York Stock Exchange (NYSE)
2.
American Stock Exchange (AMEX)
3.
NASDAQ Stock Market
Companies select which exchange to list or trade their
stock on.
Who sells STOCKS?

Stock Traders
- the actual company
- Individuals
- firms
Examples:
Proctor & Gamble
Fifth Third Bank
Merrill Lynch
Ameritrade
E-trade
How I can purchase STOCK?

On-line
Using the internet to buy/sell

Companies Location
Go on-sight to purchase
directly from the company

Stock Brokers
Utilize a second party to
handle your trading
Forms of STOCKS
There are two basic
forms of stock:

Common Stock

Preferred Stock
Common Stock vs Preferred Stock

Provides holder right to vote
on major company issues

Do not have voting rights

Value does not change very
much

Value can change rapidly

High risk

Not as risky

Cheaper to invest in

More expensive to buy

Not guaranteed a dividend

Typically dividend is
guaranteed

Paid last

Always paid first
Common Stock = Preferred Stock

Bought/Sold in the same manner

Company can offer both common and
preferred stocks

Signifies ownership in the issuing company

Both trade on the stock exchanges
How are STOCKS recognized on the
Exchanges?
Stock Symbol or Ticker Symbol

A way used to uniquely identify publiclytraded share of a particular stock

It may consist of letters, numbers or a
combination of both
Example Ticker/Stock Symbols

FITB = Fifth Third Bank

WMT = Wal-mart

PG = Proctor & Gamble

K = Kellogg

GE = General Electric

AAPL = Apple, Inc.

KO = Coca-Cola

JNJ = Johnson & Johnson

MSFT = Microsoft

EBAY = EBAY
COMING SOON
Stocks - Classifications?
 What are Mutual Funds?
 Tips to successful investing.
 The S.M.G. (Stock Market Game)
