Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


BUS 100-Stocks 101

Intro to Stock Market

Soledad McCarthy

on 10 September 2018

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BUS 100-Stocks 101

Template by Missing Link
Images from Shutterstock.com

Securities Markets
The Primary Market describes stocks sold directly to the public by a particular corporation

Also known as an IPO-Initial Public Offering

Secondary Market-Trading of previously issued stocks

Secondary Market trades may take place on organized exchanges or in what is known as the Over-the-counter Market

Brokerage houses help investors with financial decisions and many are available on the internet
Wall Street
The two biggest stock markets in the United States are the New York Stock Exchange (NYSE) and the NASDAQ market.

The American Stock Exchange is now part of the New York Exchange, and NASDAQ bought both the Boston and Philadelphia regional exchanges.

Exchanges used to be divided into organized exchanges and over-the-counter markets, but during the last several years, dramatic changes have occurred in the markets.

Both the NYSE and NASDAQ became publicly traded companies. They were previously not-for-profit organizations but are now for-profit companies.
Stock Market
A basic look at finance
A Stock is a type security that signifies ownership in a corporation

Represents a claim on part of the corporation's assets & earnings
Stocks, Bonds and Babble
Over the Counter Market
Dow Jones
Unlike the organized exchanges, the over-the-counter (OTC) market is a network of dealers all over the country linked by computers, telephones, and Teletype machines.

It has no central location. Today, the OTC market consists of small stocks, illiquid bank stocks, penny stocks, and companies whose stocks trade on the “pink sheets.”

A exchange, companies quoted on the pink sheets system do not need to meet minimum requirements or file with the SEC. Pink sheets also refers to OTC trading
Indicator of 30 Blue-Chip Stocks on the New York Stock Exchange

Blue-chip stocks- A common stock of a nationally known company whose value and dividends are reliable
Ticker Talk

Berkshire Hathaway

-2134 (.71%)

Open 296,400

52 week:
High 326,350

Low 242,180

Mkt Cap 487.42B
Market Cap=the total value of the issued shares of a publicly traded company

Housing Bubble
The bankers engaged in risky financial behavior packaged up billions of dollars of mortgages into securitized assets.

In other words, an investor could buy a pool of assets and collect the interest income and eventually get a payment at the end of the life of the product.

This technique allowed banks to make a mortgage, collect a fee, package the mortgage, and collect another fee.

Credit Unions
A financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion.

The Aggieland Credit Union in College Station, Texas, for example, provides banking services for faculty, employees, and current and former students of Texas A&M University

Because the credit union is tied to a common organization, the members (depositors) are allowed to vote for directors and share in the credit union's profits in the form of higher interest rates on accounts and/or lower loan rates.
Mutual Funds
A mutual fund pools individual investor dollars
and invests them in large numbers of well-diversified

Individual investors buy shares in a mutual fund in the hope of earning a high rate of return and in much the same way as people buy shares of stock.

The NYSE was created on
May 17, 1792 underneath a Buttonwood Tree
A special type of mutual fund called a money market fund invests specifically in short-term debt securities issued by governments and large corporations.

Although they offer services such as check-writing privileges and reinvestment of interest income, money market funds differ from the money market accounts offered by banks
Money Market Funds
Because of the large numbers of people investing in any
one mutual fund, the funds can afford to invest in hundreds (if not thousands) of securities at any one time, minimizing the risks of any single security that does not do well.

Mutual funds provide professional financial management for people who lack the time and/or expertise to invest in particular securities, such as government bonds.

These securitized mortgages were sold to the market as asset-backed securities with a AAA credit rating off their books and replaced with cash to make more loans.

In this case, when the bubble burst, it had extremely severe consequences for the economy, workers, and investors.
Brokerage Money Market Funds represent a pool of funds,

While Banking Money Market Funds, are basically specialized, individual checking accounts.

Money market funds usually offer slightly higher rates of interest than bank money market accounts.

You and your group have $100,000 total
Please choose between 5 & 7 stocks
You can divide the money between your 5-7 stocks any way you like
I will post a worksheet to Canvas
You will track your stocks until the due date

Wall Street vs Gangsters
What's the Difference?
Full transcript