Annex 1

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8th Grade Economics
Annex 1 The Stock Market
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8th Grade Economics
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Objectives

• Understand the differences between the DOW and
  NASDAQ
• Explain the function of the NYSE
• Analyze and graph stocks performance
• Compare and contrast individual stocks and mutual
  funds

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Stock Market

• A private or public market for the trading of
  company stocks at an agreed price

Annex 1 The Stock Market
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New York Stock Exchange

• A stock exchange based in New York City, New
  York
• It is the largest stock exchange in the world
  by dollar value
• As of October 2008, the
• combined capitalization
• of all domestic
• New York Stock
• Exchange listed
• companies was
• US10.1 trillion

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New York Stock Exchange
DJIA
(Formerly known as The DOW) An American stock
exchange were industrial stocks are sold.
An American stock exchange, with its components
(shares) being technology stocks
NASDAQ
A market of large publicly held companies that
trade on either of the two largest American stock
markets, the New York Stock Exchange and NASDAQ
SP 500
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New York Stock Exchange
Bear
Bull
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New York Stock Exchange
Bull Market A tend of increased investor
confidence, motivating investors to buy in
anticipation of further capital gains. The
longest and most famous bull market was in the
1990s when the U.S.
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New York Stock Exchange
Bear Market is described as being accompanied by
widespread pessimism. investors anticipating
further losses are motivated to sell
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Investments
Strategy
Stocks
Funds

• Loaning your money to an investment firm to
  invest your money

• The buying of shares of a company with the hopes
  of increasing your wealth
• Broker
• Personal

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Industries
Primary
Raw materials
Diversify
Secondary
Manufacturing
Tertiary
Services
Quaternary
Quinary
Research and Development
Government
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Industries
Financial
Diversify
Manufacturing
Health care
Retail
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Introduction to Economics
Glossary
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Chapter 1 Glossary

• Stock A share or a portion of a business or
  corporation, (also known as a share)
• Stock Exchange a corporation or mutual
  organization which provides "trading" facilities
  for stock brokers and traders, to trade stocks.
• Stock Broker An individual who buys and sells
  shares of a company or business at the stock
  exchange for an investor
• Investor an individual who buys and sells shares
  of a company or business
• Stock market a private or public market for the
  trading of stock (shares) of company stock at an
  agreed price
• NASDAQ (National Association of Securities
  Dealers Automated Quotations) is an American
  stock exchange, with its components (shares)
  being technology stocks
• Dow Jones Industrial Average (Formerly known as
  The DOW) is an American stock exchange were
  industrial stocks are sold.

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Chapter 1 Glossary

• SP 500 published in 1957, a market of large
  publicly held companies that trade on either of
  the two largest American stock markets, the New
  York Stock Exchange and NASDAQ. Almost all of
  the stocks included in the index are among the
  500 American stocks with the largest market
  capitalizations.
• Individual Stocks When you as an investor
  personally buys shares of a company in hopes that
  the company will expand its financial capital,
  which in turn will provide you with increase
  value
• Mutual funds When you as an investor give your
  money to an investment firm which they use to
  invest in a company or companies.

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Lesson

• You have 10,000 to purchase five (5) stocks in
  any combination you desire
• Chart their weekly(Monday and Friday) activity
  the remainder of the quarter.
• Use different colors to represent your stocks
  growth.

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Lesson
260
240
220
200
180
160
140
120
100
80
60
40
20
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Annex 1 The Stock Market
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Lesson
260
240
220
200
180
160
140
120
100
80
60
40
20
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Annex 1 The Stock Market
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(No Transcript)
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Lesson
2,000
1,950
1,800
1,650
1,500
1,200
1,050
900
750
600
450
300
150
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Annex 1 The Stock Market