Stock+Market+Game

**Stock Market Game Notebook Project**
 * Link to the Stock Market Game Website: [|www.stockmarketgame.org]**

//Each team will have $100,000 to invest in the Stock Market in accordance with the rules of the game(see website). This project will be ongoing until December 2. We will work on this project each Friday in class but you are also welcome to work on it outside of class hours, as it is accessible from the internet. All notebooks are due for final grading on December 2 (Major Grade)// //**Notebook Progress Checks:(Minor Grades**)// **//Tuesday, November 8//** **//Tuesday, November 22//**

**Vocabulary** **Common Stock**: Shares of a company that do not guarantee a dividend and have more risk and volatility than preferred shares. Common stock holders have the benefit of providing shareholders with the right to vote for the board of directors as well as on issues that come before the board at the annual meeting of shareholders. **Corporation**: A business that is owned by stockholders and has right and responsibilities as if it were a person. **Dividend**: Part of a company’s profits (earnings) that it pays as money to stockholders. **Earnings**: The amount of money that remains after subtracting the company’s expenses from its revenue. **Investor**: Someone who risks funds by purchasing financial products with the hope the investments will increase in value over time. **IPO**: Initial Public Offering; the initial sale of stock to the public by investment bankers. **Preferred Stock**: Shares of ownership of a company in which the share holder is guaranteed a dividend if one is declared and whose shares are usually not as volatile as common stock. Preferred stock holders do not have voting rights in company elections and decisions. **Private Company**: A company that is owned by a person, family, or small group of investors that does not sell shares of stock in the company to the public. **Public Company**: A company that is owned by investors who buy shares of stock, partial ownership of the assets of a business, in the corporation usually through one of the stock exchanges. **Risk**: The chance of losing all or part of an investment. Investing in the stock market is a risk because you could lose all or part of your investment. Risk and return have a positve correlation. High Risk can equal High Return, but also the possibility of High Loss. Usually, the amount of risk you are willing to take will decrease as you age, since older adults may not be working and need a certain amount of money to live on. **Stock**: A type of security that signifies ownership in a corporation and represents a claim to a part of the company’s profits or losses. Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations. **Tombstone Ad**: An announcement appearing in financial publications such as the //Wall Street Journal // announcing a company’s Initial Public Offering (IPO.) **Underwriter**: Typically an investment banker, buys an entire new securities issue from the company or government offering it, and resells the issue as individual stocks or bonds to the public. **Volatility**: Indicates how much and how quickly the value of an investment, market, or market sector changes.