A stock represents a share of ownership in

• A stock represents a share of ownership in a publically traded company. • Shares are also known as securities because they secure cash value for ease of investment.

• The most valuable and stable stocks are called “blue chips”. (30 Dow Jones Components) • Mid caps, small caps and penny stocks are riskier investments and less valuable companies. • All company stocks have a ticker symbol, like Walmart is WMT, Facebook is FB and Coca Cola is KO.

• A stock market is a physical or digital marketplace for the sale of shares in companies. • Stock brokers are professionals who purchase and sell shares.

• The New York Stock Exchange, located on the corner of Wall St. and Broad St. , is the oldest, largest, and most famous stock market. • The NASDAQ (National Association of Securities Dealers Automated Quotations) is the second largest stock market in the world and is a digital, computerized market. • Stocks are traded internationally and measured on indexes such as the FTSE in the U. K. , the DAX in Germany, or Major Asian stock exchanges such as the NIKKEI in Japan, and Hang Seng of China.

• The Dow Jones Industrials Average (DOW) is an index that measures the performance of 30 major U. S. stocks like 24, 099. Mc. Donalds, Walmart, Microsoft and 05 -64. 1 Verizon. (-0. 27% ) • The NASDAQ index measures the performance of technology heavy stocks in the NASDAQ market 2, 654. 80 +6. 75 (0. 25%) 7, 130. 70 +64. 44 (0. 91%) • The S&P 500 (Standard and Poor’s), is an index based on 500 leading companies in the U. S.

• 54% of Americans are invested in stock markets through retirement plans like 401(k)’s for private companies, or 403(b)’s for public employees. • These retirement plans take a percent of a worker’s pay and invest it in stocks for retirement. • Private employers may match the employees donation to their 401 k.

• Private employee 401(k) plans or public employee 403(b) plans are made up of a variety of investment products such as company stocks or mutual funds. • A mutual fund is a professionally managed investment that pools money from many people to purchase a variety of stocks. • They are packaged together like baskets of eggs, and offer both low risk and high risk options.

Online Investment Sites

• Exchange Traded Funds are investments that can be traded like a stock, but have the diversity of mutual funds. They also have ticker symbols. • Mr. Bertrand’s favorite ETF’s to invest in are… • DIA-follows Dow Jones • QQQ-follows Nasdaq • SPY-follows S&P 500 • They just follow the market and don’t take crazy risks.

DIA: SPDR Dow Jones Industrials Average ETF +59%

SPY : SPDR S&P 500 ETF +64%

QQQ: Power. Shares Nasdaq ETF +113%

• Stocks and bonds are first offered on primary markets during an IPO (initial public offering) to a select group of investors. • After the IPO, they are sold on secondary markets (NYSE, NASDAQ) to the public for different prices.

• Bonds are also securities because they hold cash value as an IOU from banks, businesses or governments, paid back with interest. • The U. S. government sells Treasury Bonds, Notes and Bills of decreasing values.

• A future is an obligation to buy or sell a specified quantity of a commodity at a specified price on a specified date. • Buy 100 pounds of coffee in December at $1. 30 per pound • an option is the right (but not the obligation) to buy or sell a specified quantity of a commodity at a particular price over a specified time period. • Spend $5 to purchase the right to buy 100 pounds of coffee for $1. 30 per pound by the last day in December.

• Some people invest in different types of currency around the world by trading one form of money for another. • Today you buy a Euro for $1. 06 in US money • You bet your Euro will grow stronger against the U. S. dollar • You trade your Euro back for dollars when its worth $1. 26 • You profit. 20¢