The stock market & you



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THE STOCK MARKET & YOU
THE NEW YORK STOCK EXCHANGE is at the very core of our private enterprise system and the economic stability of the 135. and the world. ‘The stocks that are bought and sold at the NYSE represent the conpanie5 that directly and indirectly touch every aspect of our lives. You’ll find corporations that make computers manufacture cars, build houses, provide entertainment, furnish medical services, and supply insurance. There are companies that invent, inform, and instruct, and corporations that buy and sell goods and services.
As you learn more about how the New York Stock Exchange operates, you’ll discover how it is part of your everyday life. From the soft drink you sipped at lunch 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 York Stock Exchange.
Using http://www.nyse.com/, go under Symbol Lookup and find out which companies are listed on the New York Stock Exchange. You can also find out the stock symbols different companies use.
Some of the brand products you are interested in might be harder to find because they are part of a larger company known as a parent company. You can research parent companies at www.nyse.com or by searching the Internet, looking at product labels, reading newspapers, or interviewing adults.
Market Terms
Every business has its own language. To understand the stock market, lets listen in on one family’s breakfast conversation. Soon you could be “talking the talk’!
JAMIE: (teenager) Did you hear that the new model of the cell phone I got last year has a built-

In MP3 player?


DAD: It sure sounds like Talk2Me knows teens.
JAMIE: Don’t you own stock in Talk2Me? You should call your stockbroker to buy more.

They make so many cool products!


MOM: We bought stock when the company had its initial public offering a few years ago.
JAMIE: What does that mean?
MOM: Talk2Me went public so they could raise money, or capital, to expand and create new

products like the MP3 phone.


DAD: At the time, we only owned bonds, which are loans that investors make to

corporations and governments. The lenders earn interest, and the borrowers get the

money they need.
MOM: We thought the value of communications industry stocks would grow over the long

term. The stock market moves in cycles from a period when stock prices are generally

rising, known as a bull market, to times when stock prices on the whole are falling,

called a bear market.


JAMIE What makes stock prices rise or fall?
DAD: Stock prices go up or down depending on supply and demand.
JAMIE: What else influenced your choice in buying this stock?
MOM: From our research we also learned that TaIk2Me pays its shareholders dividends, or

money from it’s profits. You’re catching on…


JAMIE: So does that mean I get a new MP3 phone?

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