What are stocks 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 ID: 1027569
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1. The Stock Market
2. A stock represents a share of ownership in a publically traded company.What are stocks?Shares are also known as securities because they secure cash value for ease of investment.
3. The most valuable and stable stocks are called “blue chips”. (30 Dow Jones Components)What kind of stocks are out there?Mid caps, small caps and penny stocks are riskier investments and less valuable companies.All company stocks have a ticker symbol, the acronym used when purchasing stocks, like Walmart is WMT, Facebook is FB and Coca Cola is KO.FAANG is an acronym for the market's five most popular and best-performing tech stocks, namely Facebook, Apple, Amazon, Netflix and Alphabet’s Google. FAANG was born out of the original acronym, FANG, which did not have Apple when CNBC’s Jim Cramer coined the term in Feb 2013.
4. A stock market is a physical or digital marketplace for the sale of shares in companies.What is a stock market and a broker?Stock brokers are professionals who purchase and sell stocks for their customers such as banks, online stock apps, and customers like you and I.
5. The New York Stock Exchange, located on the corner of Wall St. and Broad St., is the oldest, largest, and most famous stock market.Where are stocks sold?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.
6. The Dow Jones Industrials Average (DOW) is an index that measures the performance of 30 major U.S. stocks like McDonalds, Walmart, Microsoft and Verizon. How are stock market performances measured?The S&P 500 (Standard and Poor’s), is an index based on 500 leading companies in the U.S. The NASDAQ index measures the performance of over 2500 technology heavy stocks in the NASDAQ market
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8. 52% of Americans are invested in stock markets through retirement plans like 401(k)’s for private companies, or 403(b)’s for public employees.How do most people invest in stocks throughout their lives?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 401k.
9. 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.What are 401-k and 403-b employee investment plans, and what are they made of?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, along with the safety of diversity within the portfolio. (not all eggs in one basket)
10. Exchange Traded Funds are investments that can be traded like a stock, but have the diversity of mutual funds. They also have ticker symbols.Combining stocks and mutual funds!ETF’sMr. Bertrand’s favorite ETF’s to invest in are index fund ETF’s… DIA-follows Dow JonesQQQ-follows NasdaqSPY-follows S&P 500They just follow the market and don’t take crazy risks.
11. DIA: SPDR Dow Jones Industrials Average ETF
12. SPY : SPDR S&P 500 ETF
13. QQQ: PowerShares Nasdaq ETF
14. Online Investment Sites
15. Stocks and bonds are first offered on primary markets during an IPO (initial public offering) to a select group of investors.When are stocks/securities offered for sale?After the IPO, they are sold on secondary markets (NYSE, NASDAQ) to the public for different prices.
16. What else can be securities?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 varying values.
17. 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 poundAre there any more securities?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.
18. Some people invest in different types of currency around the world by trading one form of money for another in hopes of a profit.What are Currency Markets?Today you buy a British Pound for $1.22 in US dollarsYou bet your British Pound will grow stronger against the U.S. dollarYou sell your British Pound back for U.S. dollars when its worth $1.30You profit .08¢If a bank bought 1million Pounds, they would have profited $80,000 in U.S. Dollars (+6.5%)