Student Investment Club
Agenda
• • • • • Introductions Basic Terminology / Information Stock Simulation Contest Administrative Closing
What is Investing?
Making your money work for you.
Purchasing an asset or item (a security) with the hope that it will generate income or appreciate in the future. Source: Investopedia.com
Stocks
• A stock represents a percentage of ownership in a company. • When you INVEST in STOCKS you buy “shares” of that stock. • The percentage of the company you buy with each share depends on the total number of shares available (shares outstanding) • Found via their TICKER SYMBOL
– 1 to 4 letters in length – Ex. General Electric = “GE” – Apple, Inc. = “AAPL”
Stock Market
• Where shares of stock are traded • Several different exchanges: NYSE, NASDAQ, AMEX • International Markets
finance.google.com
GE Stock Quote
Other Sites to Try…
• Yahoo! Finance (finance.yahoo.com) • Morningstar (morningstar.com)
Stock Brokers
• Can buy and sell shares of stocks for you • Charge a commission each time you buy or sell (online brokers usually $3 to $12 per trade) • Examples: E*Trade, TD Ameritrade, Scottrade, Charles Schwab, SogoTrade • When you buy or sell you create an ORDER for a stock
Order Types
• Market: Buy/sell at the next available price • Limit: Buy/sell at any price better than what you specify • Stop: Sell if the price falls to a certain price or buy if a price rises to a certain price (AKA Stop-loss)
Competition!
• • • • • • $10,000 Up to 5 different securities 3 Weeks (2 orders will be collected) Collect first “BUY” orders next week. Chance to buy or sell again Feb. 22. Winner determined by market values on March 1!
• MYSTERY PRIZE!!!!!
Available Executive Positions
• • • • Treasurer Director of Investment Simulations Director of Group Investments Director of Technology
• See us after the meeting!
Questions?