Friday, September 30, 2011

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

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