股票投资简介：英文版

AnIntroductiontoStocksSpring2007©JasonLeeFreshmanSophomoreBusinessClubToday’sTopicsWhatarestocks?Whatisthestockmarket?Howdowemakemoneyoffinvestinginstocks?WhyshouldIinvest?Whystocksormutualfunds?Whynotjustsave?HowshouldIinvest?UnderstandingyourselftodetermineyourfinancialgoalsFindingwhatyoucandoandwhatyouwanttodoWheredoIstart?Whatresourcesareoutthere?HowcanIlearnmore?HowdoIstartinvesting?StockBasics

(Whatarestocks?)Whatisastock?Commonstock–most“common〞typeGivesyoua“share〞ofownershipofapubliclytradedcompanyClaimonitsassetsandearnings(dividends)Alsosomethingcalled“preferredstock〞FixeddividendpaymentsWhatisastock?TickersymbolsSetoflettersthatrepresentasecuritytradedonanexchangeEx.MSFT,GS,AAPL,MA,BUD,LUVWhatarecapitalgains?IncreaseinvaluerelativetothepurchasepriceNotrealizeduntilassetisactuallysoldTheMarketsExchangesListsstocksandsetspoliciesforhowstocksaretradedMajorexchangesNewYorkStockExchange(NYSE)AmericanStockExchange(AMEX)NASDAQTheIndices(index)ImaginarycollectionofstocksthatissupposedtorepresentthestockmarketS&P500(500largestcompaniesonUSstockMarket)DowJones(30mostsignificantstocksinthestockmarket)NasdaqComposite(indexrepresentingallthestocksontheNasdaq(tech))WhatCausesStockPricestoChange?SupplyandDemandEarnings(expectations)Sentiments,attitudes,&senseofgreedEconomicIndicatorsFollowtheleaderManipulationLOTSofdifferenttheoriesWhyinvest?Whystocks?

(Whataboutmysavingsaccount?)1976-2000InvestmentAverageAnnualReturnS&P50011%Small-CompanyStocks12%U.S.TreasuryBonds(short-term)

4%U.S.TreasuryBonds(long-term)5%SavingsInterestRate1-3%Inflation

2-3%Source:TheMotleyFoolGuide:HowtoStartInvestingWhatisthiscourseabout?136%Gaininlessthan1yearNASDAQ(1999-2001)+50%lossin1yearYoucanmakegoodmoney…(Butdon’tforget,youcanlosealotofittoo)AppleComputers(+750%in24months)UrbanOutfitters(+330%in23months)HowshouldIstartinvesting?(WhatkindofinvestoramI?)DeterminingYourFinancialGoalsInvestingisalongcartrip.Thereneedstobealotofplanningthatgoesintoit.Howmuchmoneydoyouwanttomake?Bywhen?Willyouneedtoliveoffyourinvestmentsinfutureyears?Whatwillyoubeusingyourmoneyfor?HavingagoodunderstandingofyourselfwillallowyoutoalignyourrisktolerancewithvariousstrategiesThinkaboutyourrisktolerance,timehorizonsforyourinvestments,andyourtimecommitmentTheRisk/ReturnTradeoff“principlethatpotentialreturnriseswithanincreaseinrisk〞Lowriskwithlowerreturns,highriskwithhighreturnsImportanttoknowyourpersonalrisktolerancewhenchoosinginvestmentsBalancebetweenriskandrewardSource:Investopedia.“DeterminingRiskandTheRiskPyramid.〞May22003WhatisYourRiskTolerance?Source:Investopedia.“DeterminingRiskandTheRiskPyramid.〞May22003CommitmentandInterestItallcomesdowntoonequestionDoyouwanttoactivelychooseorbeapartofthedecisiontodeterminewhichcompaniestoinvestin?Doyouwantyourinvestmentstodeterminedbysomethird-party?Isitinterestingtoyou?Canyoucommitthetimeandefforttokeepupwiththemarketnews?ActiveversusPassiveManagementActivemanagementManagingyourownportfolio,determiningwhichstockstoownandwhentobuy/sellDiscussingwithyourbrokerwhatstocksyoumightwanthimtoinvestforyouChoosingbetweendifferentmutualfundsPassivemanagementChooseonemutualfundandforgettingaboutitforthenext10yearsBuyinganindexfundorhavingyourportfoliomatchtheindexfundatalltimesWhereandhowdoIstart?

(Startinganaccount,resourcesforlearning)Keeplearning!MakesureyouunderstandthebasicsInvestopedia()MotleyFool()InvestorGuide()ThesesitesalsohaveintroductionstocertaininvestingstrategiesBooks(learnfromthegreatestinvestors)HowtoMakeMoneyinStocks(WilliamO’Neil)BeatingtheStreet(PeterLynch)LessonsfromtheGreatStockTradersofAllTime(JohnBoik)TheWarrenBuffetWay(RobertHagstrom)BrokeragesNeedamediumtotradethrough(brokerages)Choosingabrokerfullservicevs.discountFees(Commission)ServicesMinimumbalanceMutualFundsFundsinwhichinvestmentprofessionalsmanageyourmoneyanddecideontheinvestmentsThesefundsoftenamounttomillionsandbillionsofdollarsandcomeinavarietyoftypesAdvantagesSimplicity/ProfessionalManagement/Diversification/Liquidity/UsuallyLowRiskDisadvantagesFees(andlotsofthem)OpeninganAccountNotahardprocess-mostofitjustsomepaperworkandmailSign-uponlineanddownloadformsMailchecks,forms,andcopyofIDAccountscreatedwithinacoupleofdaysCashaccountsusuallyneverturneddownMarginaccountsmightbeaproblemifyouhaveprettybadcredithistoryTostartinvesting,won’tneedmuchelseotherthanacomputer,somemoney,andinvestingknow-howVirtualSimulationWhenyoufirststartout,learnandtryoutyourstrategiesonavirtualsimulationAllowstosetupanimaginaryaccountandtradevirtualmoneyontherealmarketwithreal-timeupdatesThoughtnotcompletelythesameasrealmoney,itwillgiveyouanideaofhowthemarketworksandhowyouwillwanttoapproachinvestingFinalThoughtsLearnthebasi