THE STOCK MARKETIsabelle Lee, Tyler Billings, Matthew Shalewitz

Vocabulary pt. 1

Capital Grow – A profit from the sale of property or of an investment

Stock – a portion of the ownership of a corporation Stock Split – An issue of new shares in a company

to existing shareholders in proportion to their current holdings.

Brokers – A person who buys and sells goods or assets for others.

Investment Banks – A bank that purchases large holdings of newly issued shares and resells them to investors.

Vocabulary pt. 2

Bull Market – A market in which share prices are rising, encouraging buying

Bear Market – A market in which prices are falling, encouraging selling.

Yields – The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

Dividends – A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

Futures – A financial contract obligating the buyer to purchase an asset

What are the major stock exchanges – Where are they?

Stock Exchanges - A market for trading of equities, a public market for the buying and selling of public stocks. New York Stock Exchange (NYSE) – New

York National Association of Securities Dealers

Automated Quotations (NASDAQ) – Virtual

What’s written on a stock report – How are they read?

Stock Report – a collection of information usually prepared by an analyst or his firm which reviews the quality of an equity (value of shares issued by company) and its suitability for various investment goal.

How are bonds different than stock?

Stocks are EQUITY. A type of security that signifies ownership in a

corporation and represents a claim on part of the corporation's assets and earnings.

Share of ownership (stockholders will receive the value of the stock after a dissolved corporation pays everyone else [bonds, employees, etc.)

Bonds are DEBT. Sold by corporations in order to raise money for use by

the company No ownership (bondholders can lose their investment if

the corporation dissolves) Interest rate

How are stock prices determined? Price of stock is determined by supply

and demand. Factors such as: changes in sale or profits, rumors of a possible takeover, or new of a technological breakthrough can change the demand for a company’s stock, and therefore its price

How does government regulate the stock market?

The U.S. Securities and Exchange Commission (SEC) is a federal agency. It holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States

http://www.youtube.com/watch?v=wwPwh3nAnSE

Tweet and purge: 12 words sent the stock market into a frenzy

http://www.poughkeepsiejournal.com/article/20130428/BUSINESS/304280007/Tweet-and-purge-12-words-sent-the-stock-market-into-a-frenzy

“At 1:08 p.m. (1708 GMT), a tweet appeared on the hacked Associated Press Twitter account saying that two explosions at the White House had injured President Barack Obama. Stocks immediately started falling, and kept doing so for two minutes. AP quickly announced that its account had been hijacked and the report was false. Prices began to climb again.”

Sources

http://wiki.answers.com/Q/What_is_the_difference_between_stocks_and_bonds

http://www.investopedia.com/ask/answers/12/how-are-share-prices-set.asp

http://learn-to-trade.thehotpennystocks.com/major-us-stock-exchanges/

http://i.investopedia.com/inv/pdf/tutorials/stock_basics.pdf