Stock Market PRESENTATION

Stock market: where buyers and sellers exchange corporate stock shares.

STOCK Market

Presentation: MAkayla Córdoba

- Investing

- Comparing Stock Prices

- Bonds

4 Personal Investment Strategy

- Term

3 Advanced Investment Strategies

- S&P 500 Index

2 Historical Trends

- Dividends

- Stock Market Investment Terms

1 Stock Market Basics

Index

Stock Market Basics

Stock Market Investment Terms

Common stock : Individual companies (no fees) Mutual Funds: Bundle of common stock, picked by a professional (con: high fees) ETFs: (exchange traded funds) Bundle of stocks but it is perfectly in alignment with an index (pros: very low fees) Dividens: sharing the profits with stockholders Bonds: an investor who buys a bond is actually lending money to the issuer to help finance

What are dividends?

A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Simplified: Payment made out of a firm's earnings to its owners, in the form of either cash or stock. In order to collect dividends on a stock, you simply need to own shares in the company. The money will be automatically put into your account when the dividends are paid.

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What are bonds? How do they differ from stocks?

WHAT ARE BONDS? The ownership rights which are not granted by bonds. They stand in for a loan that the buyer made. By purchasing a bond, you are granting the issuer a loan, and they commit to repay the initial amount of the loan together with interest at periodically. Company bonds do not grant you any ownership rights. As long as the business still has the resources to make loan payments on time, you won't necessarily gain from the company's growth and you won't see as much of an impact when the company isn't doing as well, either. STOCKS VS BONDSThe primary contrast between stocks and bonds is that stocks give you a portion of a corporation's ownership, whereas bonds are a loan you make to a company.

Historical Trends

S&P 500 Index

1) 2005-2023:Annualized Return: 6.64% Percent Return: 218.13 2) 2022-2023: Annualized Return: -20.27 Return: -20.27 3) 1973-2023: Annualized Return: 7.18 Return: 3110.86

Comparing Stock Prices

1. S&P 500 Index(2005 - 2023) 18 years: $31,809.91(1973-2023) 50 years: $248,889.64 2. Pick an individual stock (2005 - 2023) 18 years: $2,300,452.90 (1973-2023) 50 years: $115,022,645

Advanced Investment Strategies

What is value investing?

Value investing is buying investments on sale. It is a technique that focuses on buying inexpensive stocks and holding them until it reaches its intrinsic value.

- Patience- Value companies hide - Intrinsic Values Can be Difficult to Estimate

Cons:

Value investing

Intrinsic value is a measure of what an asset is worth. Formula: IV = |S - K| IV = intrinsic value S = current price K = strike priceExample: if a call option's strike price is $10 and the market price is $30, its intrinsic value is $20 If the market price is below that value it may be a good buy. If above it's a good sale.

Intrinsic value

- Simple to learn - Low risk, High reward - Could have good Long term returns

Pros:

Personal Investment Strategy

ETF share prices fluctuate all day as the ETF is bought and sold. It is different from mutual funds, which only trade once a day after the market closes. Mutual funds collect money from a number of investors and invest it in a variety of securities.

what you would do with $10,000? If I had $10,000 to invest I would invest in Mutual Funds and ETFs (exchange-traded funds). - They make investing easy - tax benefits - risk management (minium risk) - usually a safe investment - ETFs offer low expense ratios - ETFs: fewer broker commissions than buying the stocks individually

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