Why do people invest in the stock market



Why do people invest in the stock market?

What are factors that affect the price of a share of stock?  Explain. 

Name two ways investors can make money from stock

What is an advantage of reinvesting dividends right back into more shares of stock?

Name and explain 3 long term investment stock strategies and 2 short term investment stock strategies. Buy and Hold, Dollar Cost Averaging, Direct investment; Buying on Margin, Selling Short

Be able to calculate the ROI for stock sold with a capital gain (profit). 

Be able to calculate ROI for stock that received dividends and sold with a capital gain.

ROI = profit /original purchase price

Be able to complete a chart for dollar cost averaging

Stock

Shareholders

Dividends

Capital gains

Market value

Stock Index

Stock Exchange

Income vs growth stock

Blue chip vs less established

Defensive vs cyclical

Bull/bear markets

IPO

Secondary market

Diverify

Stock split (calculate)

Direct investment

Reinvesting dividends

EPS (calculate)

Inside trading

SEC

Know how to read a stock page—what info you can find for each stock listed.

Securities Markets:  channels for buying and selling stock. Regulated by SEC (Securities Exchange Commission)

NASDAQ: use 4 letters for ticker symbols

NYSE:  largest in US

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