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The stock market

The stock market is a platform where shares of corporations are bought and sold. Owning shares represents ownership in a company; for example, if a company has 100 shares and you own 4, you hold 4% ownership. Investors typically work with stock brokers, who assist in buying and selling stocks for a fee known as a commission. Key terms include dividends, which are profit shares given to shareholders, and market trends like bull and bear markets. This guide will help you navigate essential stock market concepts and terminology.

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The stock market

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Presentation Transcript

  1. The stock market

  2. Stock • Shares in the ownership of a corporation. • If there are 100 shares out for the company, and I own 4 of them, that means that I own 4% of the company.

  3. Stock Market • Place where stocks and bonds are regularly bought and sold. • The place where I can buy part of the company.

  4. Stock Broker • A licensed specialist who helps investors (people who want to buy into companies) buy and sell their stock. • They help to know when the stock is going to go up, and when it is going to go down, and when a good time to buy and sell your stock is.

  5. Commission • A fee charged by brokers for their services. • Can either be a % or a flat fee.

  6. Shareholder • People who own stock in a corporation.

  7. Dividends • The part of the profits of a corporation that each shareholder receives. • I bought 1 share of stock for $2.00. • During the day the stock increased in value by $2.00. That means that my $2.00 that I initially invested turned into $4.00.

  8. Bull Market • A phrase which means that the stock market is going to go up

  9. Bear Market • A phrase which means that the stock market is going to go down.

  10. Equity • Ownership of a stock in a company, or also, how much money your stock is worth minus the amount that you owe.

  11. High • The highest price for the stock in the trading day.

  12. Low • The lowest price for the stock in the trading day

  13. Close • The price of the stock at the time the stock market closes for the day

  14. Chg (change) • The difference between two successive days’ closing price of the stock.

  15. Yld (yield) • Dividend divided by price

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