Stock market index pdf

Som e of the most common reasons supply and demand are affected include;. After everything is taken into account, the price of a companies stock comes down to the laws of supply and demand. There are millions of transactions from both buyers and sellers taking place in the market every day. However, on the flip side, when the sellers move in and overwhelm the buyers, we can see price sell-off quickly and aggressively lower. It has been proven repeatedly that over long periods of time, the stock market can generate substantial returns that are hard to beat.

As we discuss in more depth below, not only can you make money from buying low and selling for a profit, but as a shareholder, you can also make money from dividends.

When many investors think of the stock market, they either think of day trading or what it would be like to find the next Facebook or Google before it takes off. However, to make solid profits over long periods of time, you do not need to take such large risks looking for the next big player. Investing in companies that have proven long-term track records of profits can give you long-term capital gains while giving you an income every year from the company dividend. Whilst there are many thousands of stocks on many different stock exchanges worldwide, there are also what are known as stock market indexes.

Stock market indexes show you the price of a basket of stocks for certain indices. For example, when people talk about the Dow Jone, they are talking about the stock market index formed with the 30 largest US publicly traded companies. There are many different stock market indexes all around the world. Whilst you may not be interested in trading them directly, they are often a good idea to keep an eye on if you are a stock trade because they can give you a quick idea of how an overall market or sector is doing.

Some of the biggest and most well know stock market indexes around the world include;. Whilst making profits through capital gain is a popular way to make money in the stock market, profiting from dividends can also be very lucrative.

A dividend is a payment to shareholders from the companies profit. This is normally made once or twice a year, depending on the company. Some large companies also pay out quarterly dividends. Normally only the biggest and most profitable companies will pay out dividends, and they will publicly declare the amount that each dividend is going to be.

To be eligible for a dividend payment, you must be a fully paid stock owner by the ex-dividend date. Whilst profitable companies will regularly pay out their normal dividend when making profits; they can also pay out special dividends. This is often the case if the company has made a larger than expected profit for its shareholders.

There are two common ways traders and investors take part in the stock market. Whilst at first glance they seem very similar, they have very different pros and cons. The most common form of share investing is buying the shares outright. This means you own a slice of that company and all the rights that come with those shares, including potential dividends. This type of trading normally involves no margin. With this type of investing, you are looking to buy as cheap as possible and profit as the price rises.

Do the same with your own students! The Consumer Financial Protection Bureau came up with this new stock market worksheet where kids work through why they think a company's stocks rose or fell. This is a free Microsoft Word document that walks your students through three familiar companies on the stock market: Amazon, Home Depot, and General Motors.

This stock market vocabulary worksheet is very simple and straightforward, and will help you to reinforce a lesson on understanding how to maneuver the stock exchange links to the worksheets are all the way at the bottom. A great lesson to teach your students is how to value a stock. You can do this by helping them to figure out the price to earnings using this worksheet.

This is Lesson 21, FYI. BizKids has a great video plus accompanying stock market worksheet pdfs that teach your child to think about investment strategies. Students will also learn how to read a stock ticker. Psst: you'll want to check out these fun compound interest activities for kids , too. Either assign a corporation to each student, or let them choose one. Then, have them do research on the company by using this worksheet. Are you ready for a really comprehensive set of stock market worksheets and lessons for students?

Sign up for a free account with EconEdLink, and get access to this great lesson on the stock market. You can use these tools to teach your students things like why diversifying when purchasing stocks is a good idea, and why corporations sell stocks. I like how this lesson on the Great Depression gives students clues and has them solve the mystery of what caused the Great Depression. Great lesson on how interdependent everything is — including the stock market, jobs, banks, farmers, etc.