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Identifying symbols and interpreting stock quotes Identifying symbols and interpreting stock quotes

Identifying symbols and interpreting stock quotes - PowerPoint Presentation

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Uploaded On 2018-12-08

Identifying symbols and interpreting stock quotes - PPT Presentation

Part of a companys profits earnings paid periodically to stockholders Stands for pricetoearnings ratio The PE is the relationship between a companys earnings and its share price It is calculated by dividing the current price per share by the earnings per share ID: 738820

company stock price companies stock company companies price earnings shares corporation sell products diversified buy portfolio decrease market demand public money activity

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Presentation Transcript

Slide1

Identifying symbols and interpreting stock quotesSlide2

Part of a company’s profits (earnings) paid periodically to stockholdersStands for price-to-earnings ratio. The P/E is the relationship between a company’s earnings and its share price. It is calculated by dividing the current price per share by the earnings per share.

A share is a unit of ownership in a corporation or mutual fund

Dividend

P/E Ratio

Share Slide3

A type of security that signifies ownership in a corporation and represents a claim to a part of the company’s profits or losses. Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.

The number of shares traded in a company’s stock. Unusual market activity, either higher or lower than average, is typically the result of some external event.

Stock

volume Slide4

Would you buy stock in the companies that make these products? Why? Why not?Slide5

General Electric

GE

General Motors

GM

Dell

DELL

General Mills

???

Ticker symbolsSlide6

CCLAYCCLAF

KO

KOFCCHOFCCHCCHBF

COKE

CCE

GO TO

HTTP

://

FINANCE.YAHOO.COM

TO PERFORM A SYMBOL SEARCH FOR COCA COLACAN YOU IDENTIFY THE TICKER SYMBOL FOR THE COCA COLA COMPANY?Slide7

PARENT

COMPANIES

VS.

SUBSIDIARIESSlide8

Google Yum! Brands, Inc.Do you recognize some of its subsidiaries?

YUM! Brands, inc.Slide9

Activity sheet 1: reading a stock quoteSlide10

What is stock?Slide11

What is the best sneaker on the market? Why?

How do you know it is the best?

If it is the best, would you want to own all or part of that company?Slide12

Why did the founders

of

companies like Nike, Apple

and

Sony

give up a portion of their ownership to sell shares to the public?Slide13

Activity sheet 1: what is a stock?Slide14

Select 5 products in which you are familiarWhich companies make the products?

Which are publicly traded or privately held?

What other products do the companies make?

You have 1 tool needed when purchasing stock:

knowledge of products people likeSlide15

Activity sheet 2: Stock market calculationsSlide16

What is a company?Slide17

A business or association usually formed to manufacture or supply products or services for profit

Can be a partnership, LLP, corporation or a proprietorship

All companies are setup in accordance with government regulations

Company Slide18

A company with publicly traded shares that anyone can buy in a stock marketLegally separated from the stockholders who own it and the managers who run it

Public corporation Slide19

A corporation that doesn’t sell shares to the public. You cannot buy shares of a private company in the stock market

Private corporationSlide20

What do these people have in common?Slide21

Each is a company that makes products or provides services to customers. The Trump organization is owned by one person but Microsoft and Martha Stewart Living Omni Media were founded by one person but became public corporations.

They all started their own famous companies!Slide22

Why would a company change its ownership?

Why would a private company want to become a public corporation?Slide23

Activity sheet 1: P&g – production & growthSlide24

What is diversification

?Slide25

It’s hard to predict how a company will perform over time.Diversification is a way to protect your money.

It’s a successful way to reduce risk.

diversificationSlide26

The clothes your wear?

The classes you take?

The food you eat?

What are the pros and cons of being diversified in these areas?

How is your life diversified?Slide27

How diversified are these portfolios?Slide28

How many different industries are represented in each portfolio?

What do you notice about the portfolios? Are any “heavy” with one particular industry?Slide29

Portfolio A=very diversified, contains stocks from a variety of industries

Portfolio B=not as diversified, several technology related companies

Portfolio C=not as diversified, several companies that sell or create personal luxury itemsSlide30

Industry/sector Research

http://www.nasdaq.com/markets/barchart-sectors.aspxSlide31

Select investments from at least 3 different industriesDiversify holdings evenly within an industry (for example: invest in the stock of high cap company such as Disney vs. start-up, low cap, animation company that appears to have potential for growth)

Rules for the gameSlide32

What causes stock prices to change?Slide33

Stock price = what investors believe a company is worth

Supply <

Demand

$$$$

Supply >

Demand

$Slide34

Internal corporate activityIndustry trends

National/international events (political, social, and scientific news)

Good

or

badSlide35

Go to an online news website, read through Economy/Business headlines and answer the following questions:

1. Do any of the headlines affect the portfolio your team is managing in The Stock Market Game?

2. Does any of this news make you want to investigate industries or companies you hadn’t considered investing in before?Slide36

P/E ratiosQuarterly earnings results

Earnings projections

Data

Slide37

How do you think this situation impacted both companies and prices of the shares of stock in their companies?Slide38

Influences on the marketSlide39

A. cut into earning, legal fees to cover the investigation and a lawyer in court

B. could make parents buy from other companies with a good reputation

C. as sales decrease the price of stock will go down

D. bad headlines=falling stock price

E. could take awhile to bounce back and rebuild reputation

F. it will drop but not as much until found guilty

G. guilty or innocent???

Toys for everyoneSlide40

Earnings will go down to pay for further tests and because they can’t sell it for 10 years

Hurt the company short term but if approved help in the long term

Price will drop and stay low until approved to sell

Price will stay low until they can get another drug approved

It will increase as long as it is popular and doesn’t have bad side effects

I would not due to high risk and long time for approval

The Good health pharmaceuticals companySlide41

Price will go up because materials costs will go up, huge demand and same supply of materials

Put pressure on the company to work quickly, they will need to increase productivity

Huge demand for new homes, they will have to hire more workers and buy more equipment

They will make a lot more money but also have greater expenses for supplies

They will become bigger and more profitable

Price of stock will go up as investors see potential

It would have gone up but not as fast

Yes, they will be making a lot of money

The good house builders companySlide42

High interest rates will make cars more expensive to finance, so demand for Ford cars will decrease

As sales decrease, so will earnings for the company

The company will have to come up with a way to make it cheaper to buy a car, may have to sell more cars overseas where costs are lower

People will sell their shares if sales decrease, so stock prices will go down

Hurt sales and make it more expensive for the company to borrow money to finance the development of new cars or open new showrooms

Yes, they need to find a way to decrease expenses

Stop production on least profitable models, close some plants, or provide lower interest loans to customers

No, they are facing some tough challenges

ford motor companySlide43

Stocks are easily influenced by world events. Select a stock in your portfolio that is most likely to be influenced by the news. Explain how current events may increase or decrease the value of the stock.

In your SMG teams…Slide44

Stock presentation