Corinna Foster
Joe Dinnetz
Economics
14 January 2015
The definition of a stock is a share of the value of a company which can be bought, sold, or traded as an investment. People choose to invest their money in this small ownership of a company to increase the amount of money they have. A stock can also be defined by the amount of capital it is raised by a business through shares. A share is a partial ownership of a companies stocks. Owning a share of stock is giving you partial ownership of the company even though it may be small. Once you own this you are entitled to all earnings and assets of the company. This type of ownership in the company is how stocks get value. As the company makes more money they will achieve more investors.
Now when looking at stock you also come across another popular term. An exchange is an organization which holds the market where stocks and bonds can be traded. However a stock exchange does not own shares. They create a marketplace for buyers to look into investing in stock. When it comes down to trading stock there are only a few options. One way is to get a broker.By doing this you are paying them to invest your money for you. This can be very beneficial but also will cost some money out of pocket for the broker. Another similar method would be using a website to trade your stocks. This way you can be more in control and won’t have to spend the money on a broker. When investing you also sometimes want to trade based on the highest price at that point. This is where the option to do market orders can be very important. You can buy or sell your stocks through this method but the price can fluctuate and or decrease drastically which can be a major flaw to this method. Whenever you make an investment you will be going through one of the major trade centers. These are better known as the Primary market, the New York Stock Exchange, the Nasdaq, The Nasdaq marketsite in Times Square, other smaller trade markets online and over-the-counter bulletin board (OTCBB) which is home to penny stock trade. When it comes to the general primary market, they are trading company stocks from big business owners. Whereas the OTCBB focuses on small company penny stocks.
The DOW Jones is a simple yet complex way to see trends in stocks to get a general idea of how the stocks value might change. The original index he created totalled the stock prices of a dozen companies and divided that total by the number of companies. Over time this 12 increased to 30 and a divisor is now used to make up for the effect of mergers and stock splits. Another way to predict your stock performance is with the S&P 500 Method. As you can tell by the name it uses 500 companies market capitalization to track the future performance of many U.S. Stocks. One major flaw of the DOW Jones index is that a low stock price can make a huge move up or down and barely budge the index, but a component with a high price can cause significant changes in the index with much smaller moves.
Another problem is that an index can become susceptible to sectors that are growing in value. As of Dec. 31, 2010, the technology, financial, and energy sectors make up just shy of 50 percent of the total S&P 500. While people can see this trend in the style of products the value of those stocks will go up as people see the trends leaning in that style of product.
When looking to invest there are a lot of things you need to look at. I chose one company to be
are interested in buying stock as a way to invest your extra money that you have leftover from your new business’. I also see that you guys have been looking at five main companies to invest in. Target, Barnes and Noble, Mcdonalds, Boeing, Johnson and Johnson, am I correct? Perhaps, I can help you clear up some of the questions that you may want to ask. When we are looking at the Balance Sheet of these five companies, we see that we start out looking at misc. stock options warrants. Options…
Preferred stock is stock that has a dividend that must be paid out before other dividends. This stock must be paid out to stockholders and the shares that do not have voting rights. Each corporation is different in how the operate and what kind of stock options they have. Though typically, if you are a preferred shareholder, you have to give up your voting rights in business decisions. It is important to remember that preferred shareholders almost always have priority over common stockholders…
I want you to choose 5 REITs and 5 real estate related stocks (banks, supply retail, construction, transportation, utilities, etc.) Medical Properties Trust: HCN Healthcare Realty Trust Inc. HR CBL & Associates (CBL) DDR Corp (DDR) Start at the website for NAREIT. You can learn about REITs and find the differing REITs on this site. Eventually you may have to go to each REITs website for information for your summaries. REITs are generally classified as follows: Begin your study on 1/15/15…
The Stock Market Crash Dear aunt, I expect you to be fine, I hope that even better than us. I write this to let you know how things for us change just in moment, when we never expected, when the things seem to be even better than ever, I want to tell you how things are now, but first let me tell you how were before and why they changed. Before the World War I everything was fine, I had a big job in the in a nice automobile company, I was in in charge to make the balances and sales of the company…
the equal bargaining power. Nicholson has the disadvantage in bargaining power; the company has relatively poor sales and profit performance in the recent years, conservative accounting and financial policies, and a low percentage of outstanding stock held by the Nicholson family and management. With this disadvantage, buyers are able to come in very easily, as what had happened on March 3, 1972. H.K Porter Company, a conglomerate with wide-ranging interests in electrical equipment, tools, nonferrous…
2/13/14 Ethics in The Stock Market To do what may be better for you or to do what is right? That is the question that one must ask them when faced with an ethical issue. The right thing may not be what will be best for you in the given situation and the other way might be the easy way out or a shortcut in your workplace to say, but what path would you take? In the stock market specifying in stockbrokers trying to get you to buy stocks ethical issues come up every day. A visual example is in the…
Microsoft, Dell, Sina Corp, and Sohu Media’s common stock performance were tracked and followed. These companies were picked on individual preferences and will be compared to the S&P 500’s performance for the same time period. This was done to see if the performances of randomly picked stocks deviate far from the performance of the market as a whole. This month had two events that had substantial effect on the market, . Hurricane sandy closed the stock market for three days and the results of the election…
methods. Apply ratio, vertical, and horizontal analyses to financial statements. Prepare journal entries associated with the issuance of preferred and common stocks and the declaration and payment of dividends. The object this week is to understand how common Prepare journal entries associated with the issuance of preferred and common stocks and the declaration and payment of dividends. The following three financial statements represent the statements to form cash flows which classified as a…
Oil price from 2019-2014: From 2008-2009: The world was facing the global economic and financial crisis. This severely affected the oil industry due the strong plunge in production and low demand of consuming. In 2010: The global economic recovery is expected to drive oil demand back up. Global oil production reaches 96 million barrels per day in the New Policies Scenario, the balance of 3 million barrel per day coming from processing gains. Worldwide upstream oil investment is set to bounce…
Analysis of the Stock Development of SAMSUNG Electronics The Chart shows the developing of the values of the stock of SAMSUNG Electronics. It shows the development over five days from November 29th to December 5th. As it can be seen the value of the stock decreases over the last five days in a more or less regular downward trend. So it can be asked why the stock losses some value over the last five days. First of all it is important to know that stock prices are caused by supply and demand…