Stock Market Game

Stock Market Game
 “It’s
a great business decision that
also benefits all of our stakeholders”
- Martin Shkreli

Side note: A stakeholder is anyone that has an
interest or is affected by a corporation. In other
words, the stockholder isn't the only party
having a stake in the corporation. Other
stakeholders in a corporation include the
employees, the employees' families, suppliers,
customers, community, and others.

Corporation- form of business organization
recognized by law as a separate legal entity with all
the rights and responsibilities of an individual,
including the right to buy and sell property, enter
legal contracts, and sue or be sued.

Stock- certificate of ownership in a corporation

Common Stock- most common form of corporate
ownership, with one vote per share for stockholders.

Having a few stocks in a company gives me power over a
corporations decisions then? Well no. Not so much.
Google has over 289 million shares. Apple has over 908
million shares outstanding (not owned by the company).
Voting power is for major issues, usually to elect
directors.

Preferred Stock- form of stock without a vote, in which
stockholders get their investments back before
common stockholders.

Dividends- check paid to stockholders, usually
quarterly, representing a portion of corporate profits.

You get paid simply for owning the stock! For example,
let's say Company X pays an annualized dividend of 20
cents per share. Most companies pay dividends
quarterly (four times a year), meaning at the end of
every business quarter, the company will send a check
for 1/4 of 20 cents (or 5 cents) for each share you own.

Not all companies pay dividends. Google doesn’t, and
Apple has only paid dividends since 2012. Why might
this actually be beneficial in the long run?
Where are stocks traded?

Most stocks are traded on exchanges such as the New
York Stock Exchange or NASDAQ. The NYSE is a
physical location whereas NASDAQ is a virtual
market.

The two other main financial hubs are the London
Stock Exchange and the Hong Kong Stock Exchange.

Mutual Funds- Money pooled from many people and
invested together in a variety of stocks and bonds.
Mutual Funds explained
Let the games begin!
 Market
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