Up Close and Personal THE STOCK MARKET & YOU …

1 THE NEW YORK STOCK EXCHANGEis at the very core of our privateenterprise system and the economic stability of the and the world. The stocksthat are bought and sold at the NYSE represent the companies that directly andindirectly touch every aspect of our lives. You ll find corporations that makecomputers, manufacture cars, build houses, provide entertainment, furnishmedical services, and supply insurance. There are companies that invent, inform,and instruct, and corporations that buy and sell goods and you learn more about how the New York STOCK Exchange operates, you lldiscover how it is part of your everyday life.

2 From the soft drink you sipped atlunch to the computer you used to e-mail your friends, many of the companies that manufacture or sell these products and services are listed on the New YorkStock Close and PersonalTHE STOCK MARKET & YOUA ctivity 2001 New York STOCK Exchange, 1 Think about the clothes you re wearing, the computer you use, or what you had forlunch. Then, list the brand names of three products (for example, soft drinks,clothing, computers) that you buy or use _____2.

3 _____3. _____Have you rented a video lately? Been to an amusement park? Or eaten at a fast-food restaurant? Each of these types of business performs a service. Think of thebrand names of three services that you have used and list them _____2. _____3. _____Now, list the brand names of three products, services, or businesses that you thinkyou will need in the next 10 _____2. _____3. _____Investing in Your FutureEach of us has a set of goals that we want to achieve in our lives: going to college, gettingmarried, buying a car or house, or taking a vacation.

4 In order to achieve your goals, think abouthow much money you need to afford your dreams. Create a timeline of your goals and writeabout how you plan to achieve them through long-term saving and 2 Now that you ve listed yourcompanies, answer the followingquestions on a separate sheet of paper. Using , go under Symbol Lookup and find outwhich of the companies youlisted are on the New York StockExchange. What are their NYSE STOCK symbols? Some of the brand productsyou listed might be harder tofind because they are part of alarger company known as aparent company.

5 Which of thecompanies you listed are part of larger companies? You canresearch parent companies by searchingthe Internet, looking at productlabels, reading newspapers, orinterviewing 2001 New York STOCK Exchange, TalkMARKET TERMSA ctivityJAMIE:(teenager) Did you hear that the new model of the cell phone I got last year has a built-inMP3 player?DAD:It sure sounds like Talk2Me knows :Don t you own stockin Talk2Me? You shouldcall your stockbrokerto buy more. They makeso many cool products!

6 MOM:We bought STOCK when the company had itsinitial public offeringa few years :What does that mean? MOM:Talk2Me went public so they could raise money,or capital, to expand and create new productslike the MP3 :At the time, we only owned bonds, which areloans that investors make to corporations andgovernments. The lenders earn interest, and theborrowers get the money they :We thought the value of communicationsindustry stocks would grow over the long STOCK MARKET moves in cycles from a periodwhen STOCK prices are generally rising, known asa bull MARKET , to times when STOCK prices on thewhole are falling, called a bear :What makes STOCK prices rise or fall?

7 DAD: STOCK prices go up or down depending onsupplyand :What else influenced your choice in buying this STOCK ?MOM:From our research, we also learned thatTalk2Me pays its shareholders dividends,ormoney from it s profits. You re catching :So does that mean I get a new MP3 phone? _____ is the first time a companysells shares of itself to the public to raise _____ is when the prices ofstocks are generally _____ is when the prices ofstocks are generally professional who is licensed to buy and sellstock is a/an you own _____ in a company,you are a its profits, the Board of Directors of acompany can declare a/an _____ to bedistributed among the , also called _____.

8 Is needed toexpand a is the quantity or amount of aproduct that is _____ is a loan, or an , thatinvestors make to corporations and governmentswhich pays interest over a fixed period of much of a product or service that is in_____ can affect the STOCK TERMSS tockBondBear MarketBull MarketCapitalSupplyDemandStockbrokerDivi dendInitial Public OfferingEVERY BUSINESShas its own language. To understand the STOCK MARKET , let s listen in on one family s breakfast conversation. Soon you ll be talking the talk !

9 DIRECTIONS: After reading the dialogue, fill in the blanks using the key terms provided to test your knowledge of some common STOCK MARKET 2001 New York STOCK Exchange, TABLESA ctivitySTOCK TABLES keep investors up-to-date on what s happening in the MARKET . Stocktables, both the electronic versions on the Internet and long columns of small printfound in newspapers, provide information about the STOCK of publicly traded s an example of a STOCK table for XYZ Communications that might be found : After reading the STOCK table, answer the following questions:1.

10 How much would you pay if you had bought 100 sharesof XYZ at the last sale? _____ 2. What was yesterday s closing price for XYZ?_____ 3. How many shares of XYZ were traded since the marketopened this morning? _____ 4. What would the total dividend be on 300 shares of XYZ? _____5. If you bought 100 shares of XYZ at the lowest price ofthe year and sold it at the highest price of the year, howmuch money would you make (excluding any taxes orcommission fees)? _____ SYMBOL: XYZXYZ COMMUNICATIONS LAST + ,976,700 OPENHIGHLOWVOLUMESHARES OUTSTANDINGPREVIOUS DAY'S CLOSETODAY'SPRICE/EARNINGS RATIO: ANNUAL (%): ,737,418, Opening & ClosingBell : Where the ActionStarts & EndsWhat do Muhammad Ali, Uncle Sam,theWorld Wrestling Federation, and the New York Yankeeshave incommon?