Mr Leong Whos Mr Leong Hobbies and Interests blogsubccateacherleong Business 9 Allen Iverson earned over 150 million over his career including roughly 40 to 50 million in endorsements ID: 782516
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Slide1
Introduction to Investing in Stocks Mr. Leong
Slide2Who’s Mr. Leong?
Slide3Hobbies and Interests
Slide4blogs.ubc.ca/teacherleong
Business 9
Slide5Slide6Allen Iverson earned over $150 million over his career, including roughly $40 to $50 million in endorsements
What’s his current net worth? A $32 million trust account
that he can’t access until he is 55
Shaquille O’Neal has earned over $286 million over his career, including hundreds of millions more in endorsements
What’s his current net worth? $400 million (he invested in Google, Five Guys, and Auntie Anne’s)
Slide7Large corporations like Amazon or Best Buy cannot be run well if they are owned by a few people.
Thus, shares of the ownership of a company are divided into what we call “
stocks”.When companies sell these shares to the public, it becomes a publicly traded corporation. What is a stock?
Slide8Slide9Why are stocks so risky?
Volatility: frequent, rapid, and unpredictable changes in the price
Returns, or profits, are not guaranteed (how does this relate to GICs?)You could lose EVERYTHINGHowever, stocks have the highest potential for the most returns over regular savings accounts.
Slide10What does “buy-low, sell high” mean?
I own
3 out of 10 shares and the individual share value is $10 I still own 3 out of 10 shares
and the individual share value is now $15
How much money did I make if I sell this investment at the new price?
Slide11The Second Way to Make Money on Stocks
Dividend: The profits of a corporation can be distributed and divided to people who own shares (shareholders).
If the total amount of dividends issued to shareholders is $50, how many dividends should I be entitled to?
Slide12What are the different types of shares you can own?
Common stock:
Gives the shareholder a voice in the operations (usually one vote one share)Can receive dividends but only after preferred stock / bondholders are paidPreferred Stock:Paid first if the company makes a profit and dividends are distributed
Lower risk, but no say in the operations of the company
Slide13Some Definitions to Know
Market capitalization: A calculation of the shares outstanding multiplied by the share price.
Ticker symbol: A 3 or 4 letter abbreviated name for a publicly traded company. 52-week range: The difference between the lowest and highest price in a year. Determines volatility and future range.
Slide14Slide15Slide16What causes these changes in price everyday?
Demand for stocks; when investors really want a stock, this drives the price up as they’re willing to pay more for it.
Earnings: if the company is not performing financially per expectations, this could drive the price down Press releases: Company announcements can indicate a new product, merger, or management shakeup.
Slide17Scavenger Hunt time!
Please download the worksheet and fill it out using Microsoft Word. You can use the Internet to conduct some research to answer the questions, you have some time to work on it and you can work in groups of 2 or 3.
Slide183 Takeaways
Changes in the demand of a company stock affect stock price - shareholders are
responsive.There are two main ways to make money on the stock market: sell your investment when it increases in value, or receive dividends. Basic investing terminology that can help you to read a stock quote.