Stock Market In the U.S.of A

By: Ryan child, Santee Gee, and Gabriel Mendoza

Today we are going too tell you about the basics of the stock market

The stock market is a network or an online market place were stock and bonds can be purchased or sold. Stocks are a peace or a share of a business and can be used by companies to create revenue for the business and its investors. Another feature of some stocks is that they pay dividends to their investors and pay them a small proportion of the stocks value back to the investors which can produce a passive income. But, if stocks lose value then the investor who didn't invest safely can lose lots of money during a time of struggle. When the stocks value goes down the dividend percentage stays unless the business changes it same as when its value increases. This means that someone who uses the stock and its dividends as a income can be affected hard if the stock makes up more than 10% of your portfolio.

So having a diverse portfolio is good for the average investor, " How can I have a diverse portfolio ?" Good question to have a diverse portfolio is to invest in high cap business like Ford for example they are a safe stock that pays good dividends and doesn't dramatically change much. A down side to the ford Stock or F for short is that you will make money but it's going to take lots of time and isn't going to get you're money back fast it will take about 20 quarters before you start making profits. Although this is a safe stock remember that all stocks are risky just some more than others like investing in a biotech company that's could be worth millions if they get a drug past but, if not you will lose lots of money really fast and this is a low cap stock. Were going to go into more depth later in this presentation.

I'm starting with what is a portfolio and why do you need one ?

A portfolio is a file or a collection of information about how much one stock makes up of your entire collection of stocks. This is representative in percentage and it's not good to have too much of a good thing that it's unbalanced in your portfolio.

Image by Ryan child and Santee Gee - This is a example of a bad portfolio as you can see on this pie chart above... what makes the portfolio bad isn't what they invested in it's that they didn't properly invest into many different types of stocks or insurances that will help store weather and sustain a upward motion of wealth.

To build a good and strong portfolio it's good to have Asset's make up about 5-10% percent of your portfolio if it's a commodity like gold and silver or on bonds which will be a small part of the presentation and then that's the limit it should never go over 10% but it's better to have it make up 5% to be safe. Next a large cap stocks should make up 40% of the portfolio but the 40% is split up amongst a about 5-6 different stocks to make it safe we will get into large cap, medium cap, and small cap Later. Then about 30% of your portfolio should be in medium cap stocks which is split amongst 10-12 different types of stocks which is a little more risk than large cap can make you a little more money. Then the last 10% of your portfolio should be filled with low cap stocks around 8 different stocks to make sure you don't lose to much in your investment but, if the stock does well you can make the most amount of money from them.

What are the three levels of stock ?

The three levels of stocks which I've already spoke about earlier is the large, medium, and small cap stocks, and I'd like to exsplain what those are to you.

Large cap or level 1

Large cap are companies with a net worth over 10 billion dollars and are the safest stock but remember every stock is a risk just some are less than other this stock is the safest but produces the least amount of profit quickly but over time can make a lot of money for you.

Level 2 or mid cap stocks

Mid cap companies are companies with a net worth from 10 billion dollars to 1.5 billion dollars they are able to make more money than large cap stocks but of course are a little more risky.

Level 3 or low cap stocks

Small cap stocks have potential for growth and are more Ricky they also have a potential of making the most money out of all of the levels but you can also loose way more money on this level. This level is companies under 1.5 billion dollars in net worth but could be worth upwards of 10 billion dollars.

Assets

Assets - "An item of property owned by a person owned r company, regarded as having value and available to meet debts, commitments, or legacies."

Bonds

Bond which I mentioned earlier are basically a loan you give to a company or government which is supposed to be paid back over time whether it's a year or five years or ten years from the purchasing day. A bonds value its related to the interest rates if the interest rates go up the the value of the bond goes down and vice versa. And how much money you make depends on how long it takes to payoff and the level of interest rates.

This is were a helpfull tool comes into play it's a app most people have and it's called stocks and you can use it to look at how stocks are doing and add pacific stocks you want to see and remove stocks you don't want to see images below.

Graph showing how the stocks price is doing

Example of stocks information from the app

Example of removing apps

This is a example of adding stocks to the app

Graph by Ryan child on Paper53

This is a graph that shows how a fake companies stock is doing over time and the highest the stocks price was around 48-49 dollar and a low which was almost 8 dollars and this shows how dramatically a companies stock can change in a few moments.

Let's say you worked for the fake companies and your fake boss wanted you to make a presentation of how the companies stocks are doing you can use this app to make graphs and charts for a presentation for potential investors in your company.

Sure numbers is great but if you don't work for a company the go onto safari were you can get a brocrage account and use that to purchase stocks and bonds directly from home on safari from select websites. Along with Numbers google sheets is another great app but you use spread sheets to present information or store past information for your self.

All and all the stock market is a online market were you the investor can make money and invest it into the economy around you. The End

Credits:

Created with images by IgorShubin - "piggy ruble penny" • nan palmero - "United States of America Flag - Stars and Stripes" • Meditations - "american bills business" • Modesto - "Wall Street 4" • Sean MacEntee - "portfolio building" • Cooperweb - "Money" • Ed Bierman - "California Capital"

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