Download Stock Market Introduction

Stock Market History

1700’s - The government financed wars by selling bonds.
Private banks raised money by selling ownership in
different companies to raise money .
 1792 - 24 large merchants met and created the New York
Stock Exchange (NYSE). They agreed to meet daily on Wall
Street to trade stocks and bonds.
Buying Stocks
1st: You need to know how much the stock
costs. This price is constantly changing.
2nd: You need to determine how many shares
(pieces) of stock you want to purchase.
3rd: You need to figure out how much you can
spend on your total purchase.
4th: You have to do some math…
Your budget ÷ price per share = number of shares
Finding Stock Prices
 By researching online, you can find the
current selling price of a stock.
 For example, at http://finance.yahoo.com
you can search for a company such as
Hershey Co. (HSY) and look at how much
the stock costs at the moment.
Stock Markets
 The main stock markets we purchase
through in the U.S. are the New York
Stock Exchange (NYSE) and the
National Association of Securities
Dealers Automated Quotation
(NASDAQ)
 When searching for a stock, make sure
it is on one of these markets
Determining Stock Cost
 Lets assume you have decided to buy
Hershey (HSY). The price is $39.91.
 You decide you want to purchase 100
shares of the company.
 To find out how much the stock will
cost you simply multiply the price
($39.91) by the number of shares (100)
and you get: 39.91 · 100 = $3,991.00
Example:
You want to buy 500 shares of Ford, at the
current trading price of $12.41 per share.
Cost of the Stocks:
500 · 12.41 = $6,205.00
Example:
You want to buy 100 shares of Berkshire
Hathaway at the current trading price of
$100,400.00 per share!
Cost of the Stocks:
100 · 100,400.00 = $10,040,000.00
Complete the stock market worksheet by looking up
stocks on the front, and picking out your own stocks
on the back.