Investing in the Stock Market - Outline

Slides are tagged by opening line.

1. “You have a good job at college” introduces the stock market as an investment option.
2. “Is it really that easy?” shows an ad that makes investing in the market look easy.
3. “What is” describes the stock market.
4. “How does” gives and example of how a business creates stocks.
5. “At the end of the year” describes what a dividend is.
6. “Each part of this process” defines quantities associated with stocks.
7. “What is the stock market” describes publicly traded stocks.
8. “It is very easy” describes how to buy stock.
9. “See if you can find” asks students to find financial quantities on a stock fact sheet.
10. “In the last example” compares the financial quantities on the stock sheet to the example in slide 4.
11. “Why buying stocks” explains why stocks are a riskier investment than savings or bonds.
12. “Let us look at an example” gives the variation in one stock over 5 days.
13. “Here is the price” lets students compare this to variation over one month.
14. “Here is AT&T over six months” shows six months, asking students to predict the near future.
15. “Here is AT&T over one year” shows one year.
16. “Here is AT&T over five years” shows five years, again asking for a prediction.
17. “Here is AT&T over ten years” shows ten years.
18. “So, what do we learn” asks students to consider the consequences of choosing various possible moments to buy or sell this stock.
19. “How then can you possibly determine” describes the price to earning ratio, or PE ratio, which indicates when a stock is “on sale”. It also includes a video of the great market crash of the 20's.
20. “Unfortunately, sudden drops” discusses ways to possibly reduce risk. Warren Buffet explains.
21. “So perhaps” suggest that investing in the stock market is not so easy. The video suggests using stocks as a retirement vehicle.