Study Guide for the Stock Markets and Investing Test - Friday, Oct. 7th

Introduction to Investing and the Stock Markets

Study Guide for the Test on Stock Markets and Investing is below:

(I will be adding items next week, too)

These items will help you prepare for the quiz:

•Uncle Mort’s Money article and questions we answered in class.
•Building a Fortune – Joe Becherer article
•Strategies for Stock Selection article (How to Pick a Stock)
•Chapter 8 in your Econ book (incl. the case study – the foundation for every unit in class
•Stocks and Bonds (p131-136 in Econ book) homework
The World of Mutual Funds homework (p137-142 in the econ book)
•Compound Interest homework (double your money)
•True and False Quiz Activity Q & A (remember the signs you held up?
Practice Online Quizzes!

Major Stock Concepts to know and know well:

 What is speculating?

 Why do people invest?

 Explain the magic of compounding...

 What does it mean to own stock?

 How do you know what stock to pick? (what are the strategies of choosing a company to invest in? (we had 7 on the board)  Can you identify and explain all seven?

 How do you read a Stock Quote (what is "Last Price or Last Trade, Volume, DIV, Market Cap, PE, etc...?

 What does it mean to sell short?

 What is a stock split?

 Why do corporations issue stock?

 Why don’t you keep your life savings in a mattress in your home?

 When is a good time to begin investing in yourself?

 What are the three largest stock exchanges in the United States?

What are commodities? Be able to explain.......

What is the DOW? What is it's purpose? Who created it? When?

What are Mutual Funds? What are Index Funds? What are sector funds? Look at the homework on Mutual Funds - all of those questions are fair game...

What does "market cap" mean on a stock quote/summary?


READ BELOW:

Make sure you can answer the questions above, thoroughly! If you can’t ask Mr. M!

STOCKS AND BONDS with TEXAS BILL

STUDY GUIDE for the Intro to Economics and Economic Systems Quiz

Study Guide and Study Aids for the Test on Wed. September 21st

Introduction to Economics and Economic Systems

What will help you prepare?
•Chapters 1 and 2 from the Economics book.
•ALL NOTES taken in class On Loose Leaf paper in your notes section
•No Such Thing As a Free Lunch - Basic Economic Concepts notes
•No Such Thing As a Free Lunch - Factors of Production and the 4 economic questions notes
•Life Examples of Opportunity Cost Questions (done in class) - remember? Business flyers vs. Vacationers?
•Trade Activity notes
•Karl Marx notes
•Homework - Intro to Economics Lesson #1 homework
•Homework - The Economic Systems of the World homework (p 24-33)
•Class activities – Feudal M&M’s, Standing in Lines (Command), Zapitalism, Fishing Experiment (Tragedy of the Commons) Adam Smith play
•Reading - Maasai Reading - A Traditional Economy
•Reading - Growing up in a Command Economy - Memories from Childhood

Concepts to Understand:
Scarcity, Profit, trade, Opportunity Cost, Feudalism, Incentive
Goods, cost benefit, Markets, Macroeconomics
Services, Competition, Wants vs. Needs, Profit motive,
Microeconomics, Entrepreneur, Traditional Economic System,
Free Market Economic System, Command Economic System, Bourgeoisie vs. Proletariat
Tragedy of the Commons


•know from class these definitions (found in looseleaf notes): Economics and Economic System, the Basic Economic Problem

Here are the Main Topics from the first units of the Year!
1. What did ADAM SMITH believe in – explain what he believed then…(what was the title of his famous book) - in loose leaf notes, right?

2. What are the three economic systems of the world today?
-Be able to describe these
-Know their advantages and disadvantages
-Be able to use examples we learned class...

Expect some questions about Joseph Lekuton (Maasai)and the Romanian girl (Growing Up In A Command Economy) from our readings.

3. List AS MANY important economic freedoms that were available to you while playing the Zapitalism simulation…

4. We spent some time looking at Feudalism – what was so unfair about the Feudal way of life?

5. Who was Karl Marx?
-What were his economic and political beliefs?
-Did he write any books explaining his ideas? What did he believe - perhaps make a list/bullet point

6. Are you able to list the Factors of Production and/or the 4 Basic Economic Questions
7. Are you able to list the 5 Characteristics of a Free Market economy? Can you describe each from our discussion in class?
8. Why was the Paper Airplane Challenge such a good activity to introduce and teach the characteristics of the Free Market System?
9. PLEASE EXPECT questions from the first quiz you took this year -
10. What is competition and how does it benefit us?
11. What is Profit Motive and why is it so important?
12. What is the Tragedy of the Commons? What does it have to do with private property?

This quiz will have short answer, fill-in-the-blank, multiple choice, and essay questions.