Unit 1 Notes

Unit 1 Powerpoint

ENTREPRENEUR
INVENTION
INNOVATION
PROFIT
ASSET

LIABILITY
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
MARKET

REINVESTMENT
COMMERCIAL PAPER
BOND
UNDERWRITER
PUBLIC OFFERING

STOCK
BROKER
BOARD OF DIRECTORS

SHAREHOLDER

CAPITAL GAIN
DIVIDEND
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
INVESTMENT

INVESTOR
SPECULATOR

MUTUAL FUND

DIVERSIFICATION

IN CLASS

HOMEWORK

• Course Syllabus
• Academic Expectations
• Academic Honesty Policy
• Course Schedule

Homework:  Read Course Academic Expectations

Read: Textbook, Chapter 8, section 1 pp. 190-195

Essential Question: What is the essential motivation of the market system?

• Markets and Profits
  • Entrepreneurs
• Business Organizations
  • Sole Proprietorships
  • Partnerships
  • Corporations
    

Quiz: Course Expectations

Quicknotes: Unit 1 Part 1 Business Organizations

Read: Textbook, Chapter 8, section 2 pp. 197-200 and section 3 pp. 202-206

Essential Question: How does the stock market function to generate wealth?

• Business Finance
  • Reinvestment
  • Commercial Paper
  • Bonds
  • Stocks

Quicknotes: Unit 1 Part 2 Business Finance

Read: Textbook, Chapter 11, section1 pp. 276-283

Essential Question: What is the essential nature of risk, and how is it balanced against expectations of return?

• Investment Strategies
  • Investors and Fundamental Analysis
  • Speculators and Technical Analysis

Quicknotes: Unit 1 Part 3 Investors and Speculators

Read: Textbook, Chapter 11, section 3 pp. 291-300

Essential Question: What is the correct interpretation of the increasingly vast amount of data concerning market movements and economic trends?

Watch:  How Wall Street Works

Be prepared to answer a short quiz based on the questions listed during the video, and discuss the answers.

Video Questions:

• Who is the individual who takes the risk to organize and manage a business, and what is his motivation?
• What is the difference between a corporate bond and a stock?
• What is financing a business through the sale of stocks called?
• What is an initial public offering or IPO, and why is it important?
• What are the risks and rewards of being a Shareholder?
• Where do most stock transactions today take place? Why?
• What is open outcry trading and why is it important?
• What are the main determinants of a company’s share price on the open market?
• Why do some brokers believe the S&P 500 is a better indicator of the health and direction of the economy than the Dow-Jones average?

Bring:  Pencil and Laptop for in-class video.

Read: Stock Market Compeition Guidelines and Investing 101

*If you missed this video, please read the synopsis here and review the posted questions.

IN CLASS

HOMEWORK

Activity: Investment Portfolio Exercise

Use the Fundamental and Technical Research forms to complete your investigation into the companies you and your teammate have discussed adding to your Portfolio.

·  Google Finance:

·  Yahoo Finance

·  CNN Money

Following the online template, complete your weekly Investment Report for week 1 of the Stock Market Competition, and post it on the correct class blackboard blog.

Bring:  Pencil and Laptop for online webquest.