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Shaping the Perception of Haiti
Understanding the Stock Market continues
...stockholder with 5,000 shares will have more influence on the company than someone with only one
share.
Most companies have annual meetings, where stockholders cast votes and ask questions of the
company's leaders. If they cannot attend, stockholders may use an absentee ballot to vote.
Shareholders also receive quarterly and annual reports that tell them how the company is doing.
What Goes Up Earns Bucks
When the price of a particular stock rises, that stock is said to be "up," meaning up in price. When the
price falls, the stock is said to have gone "down." The terms "up" and "down" are also used to describe
the rise and fall of the market as a whole.
As a company makes money, the value of its stock goes up. For instance, pretend you bought some
shares of stock for $10 each. Since you share the company's profits, if it does well the shares might
later be worth $15 each. You could then sell your stock and make $5 on each share. If the company
loses money, however, you would also share its losses. Those $10 shares might each be worth $3 if
the company fell on hard times.
Those Funny Fractions
In April 2002, all stock exchanges in the U.S. began trading their stocks in dollars and cents.
For instance, the price of a particular stock might go up $1.10. This means that the price of a stock
increased $1.10 over its previous price. If a share of stock had been worth $10, it would now be worth
$11.10.
This is different from the earlier system, when stocks were traded in fractions based on 1/8th. If a stock
worth $10 went up 1 and 5/8ths, it meant that the stock had risen $1 plus 5/8ths of a dollar in price, or a
total of $1.62. In other words, if each share had been worth $10 previously, it would now be worth $11.62.
But why divide each dollar into eighths when it could simply be divided into hundredths—a hundred
pennies, to be exact? It's because the U.S. dollar is a relatively new kind of currency. When the stock
market opened at the end of the eighteenth century, prices were based on the Spanish dollar, which is
divided into eighths.
Of Bears and Bulls
Bears are cautious animals who don't like to move too fast. Bulls are bold animals who might charge
right ahead. An investor is said to be "bearish" if he or she believes the stock market will go down. A
"bearish" investor will buy stock cautiously. A "bullish" investor believes the market will go up. He or she
will charge ahead and put more money into the market. An investor can be bearish or bullish about a
particular kind of stock.
Likewise, the term "bear market" describes a time when stock prices have been falling on the whole. A
"bull market" is a period when stock prices are generally rising.
source: infoplease.com/stockmarket
share.
Most companies have annual meetings, where stockholders cast votes and ask questions of the
company's leaders. If they cannot attend, stockholders may use an absentee ballot to vote.
Shareholders also receive quarterly and annual reports that tell them how the company is doing.
What Goes Up Earns Bucks
When the price of a particular stock rises, that stock is said to be "up," meaning up in price. When the
price falls, the stock is said to have gone "down." The terms "up" and "down" are also used to describe
the rise and fall of the market as a whole.
As a company makes money, the value of its stock goes up. For instance, pretend you bought some
shares of stock for $10 each. Since you share the company's profits, if it does well the shares might
later be worth $15 each. You could then sell your stock and make $5 on each share. If the company
loses money, however, you would also share its losses. Those $10 shares might each be worth $3 if
the company fell on hard times.
Those Funny Fractions
In April 2002, all stock exchanges in the U.S. began trading their stocks in dollars and cents.
For instance, the price of a particular stock might go up $1.10. This means that the price of a stock
increased $1.10 over its previous price. If a share of stock had been worth $10, it would now be worth
$11.10.
This is different from the earlier system, when stocks were traded in fractions based on 1/8th. If a stock
worth $10 went up 1 and 5/8ths, it meant that the stock had risen $1 plus 5/8ths of a dollar in price, or a
total of $1.62. In other words, if each share had been worth $10 previously, it would now be worth $11.62.
But why divide each dollar into eighths when it could simply be divided into hundredths—a hundred
pennies, to be exact? It's because the U.S. dollar is a relatively new kind of currency. When the stock
market opened at the end of the eighteenth century, prices were based on the Spanish dollar, which is
divided into eighths.
Of Bears and Bulls
Bears are cautious animals who don't like to move too fast. Bulls are bold animals who might charge
right ahead. An investor is said to be "bearish" if he or she believes the stock market will go down. A
"bearish" investor will buy stock cautiously. A "bullish" investor believes the market will go up. He or she
will charge ahead and put more money into the market. An investor can be bearish or bullish about a
particular kind of stock.
Likewise, the term "bear market" describes a time when stock prices have been falling on the whole. A
"bull market" is a period when stock prices are generally rising.
source: infoplease.com/stockmarket
