Income Stock: • Solid company that pays a good dividend.
Growth Stock: • Company that pays a low dividend, but uses capital to expand grow. • Speculator
What causes stock prices to rise or fall? • DEMAND • The company’s profits –Attractive –Unattractive • Psychology • Current Events
How is stock purchased? • Brokers purchase stock on behalf of their customers for a commission • Must be members of the exchange. • Online
What is the New York Stock Exchange? • Established in the 1700’s as a place to trade stock • America’s largest exchange • Secondary Market • 1366 Members • 2800 Companies Listed
Steps to Buying/Selling Stock • • • Decide to Buy/Sell Stock Contact Broker Order sent to Booth at NYSE Order given to Floor Rep Trading Post Specialist Buy or Sell is carried out Price is adjusted Account is settled
What is NASDAQ? • National Association of Securities Dealers Automated Quotation System • Over the Counter Market
What is the Dow Jones Industrial Average? • The average of 30 big companies.