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TRANSCRIPT
EDS Financial Trading & Technology Center
“Stock Market 101”
What we do
• Trade• Research
• Bloomberg• FactSet• StockVal• Reuters
• Teach
Investment Vehicles
• Stocks• Bonds• Treasuries• Derivatives• Currencies• Exchange-Traded Funds• Mutual Funds• REITS/Mortgage-Backed Securities
What is Stock?
• Part ownership in a company• Originally issued so that the company
can raise large amounts of cash• Referred to as equity• Traded on exchanges (NASDAQ, NYSE,
etc.) to promote liquidity
How to Pick Stocks
• High trading volume• New lows/highs• In the news• Stock screeners• Call your broker• Whatever interests you!
Where to Look for Information
• www.investopedia.com• Yahoo! Finance• Wall Street Journal• Business Week• Data Feeds (Bloomberg, FactSet, etc.)• Company Websites (Investor Relations)• Companies’ 10Qs/10Ks
I found one! So now what?
• Do your homework (Due Diligence)!• “Paper trade” before investing real
money• http://simulator.investopedia.com/• http://www.youngmoney.com/stock_market_game/
• http://www.google.com/Top/Business/Investing/Games/
• Consult a professional
Bottom Line: Educate yourself!
How to Purchase Stock
• Online Brokerages• Scottrade• Charles Schwab• E*Trade• Ameritrade• Lowtrades• TD Waterhouse
• Traditional Brokerages• Through Mutual Funds
Keep track of your investments
Look at Charts• Bigcharts.com• Stockcharts.com
• Watch for News/Press Releases• From your company• About your industry• About politics/the economy
• Check the Newspapers
How to Read a Stock Table
• Columns 1 & 2: 52-Week High and Low • Column 3: Company Name and Type of Stock. • Column 4: Ticker Symbol • Column 5: Dividend Per Share • Column 6: Dividend Yield
How to Read a Stock Table (cont.)
• Column 7: Price/Earnings Ratio • Column 8: Trading Volume• Column 9 & 10: Day High and Low • Column 11: Close • Column 12: Net Change
What opportunities are available to me as a finance student at UT?
• Commercial Banking• Corporate Finance• Financial Planning• Insurance• Investment Banking• Asset Management• Real Estate