All Rights Reserved by Invest EdAll Rights Reserved by Invest Ed™™SponsorSponsorss

Oklahoma Securities CommissionOklahoma Securities CommissionUniversity of Oklahoma OutreachUniversity of Oklahoma Outreach

22

Some Guiding PrinciplesSome Guiding Principles

We are aware that prudently managing our financial We are aware that prudently managing our financial affairs requires we affairs requires we work…work…1.1. to establish good credit.to establish good credit.2.2. to monitor our net worth. to monitor our net worth. 3.3. towards accumulating wealth for when we are no towards accumulating wealth for when we are no

longer working.longer working.4.4. to gain an adequate perspective of the financial to gain an adequate perspective of the financial

world to apply the lessons of compounding to our world to apply the lessons of compounding to our net worth.net worth.

We propose a portfolio tracking project for high We propose a portfolio tracking project for high school students to enable them to achieve no. 4. school students to enable them to achieve no. 4.

33

Proposed Activity for Proposed Activity for Learning Financial Principles Learning Financial Principles

and Communication Skillsand Communication Skills

The project involves raising fraud awareness, The project involves raising fraud awareness, assessing risk, setting investment goals, assessing risk, setting investment goals, researching and selecting a portfolio of researching and selecting a portfolio of stocks, tracking and updating the portfolio stocks, tracking and updating the portfolio through a specific timeframe, and preparing a through a specific timeframe, and preparing a report discussing financial principles used in report discussing financial principles used in the selection process and lessons learned the selection process and lessons learned from the process. from the process. www.investedok.orgwww.investedok.org

44

Tracking a Portfolio Tracking a Portfolio on the Interneton the Internet

Tracking a securities portfolio on the Internet Tracking a securities portfolio on the Internet offers the opportunity to learn investment offers the opportunity to learn investment lessons.lessons.

provides tracking services at no costprovides tracking services at no cost

provides opportunity to develop an intuition of provides opportunity to develop an intuition of the marketthe market

provides motivation for acquisition of essential provides motivation for acquisition of essential market vocabularymarket vocabulary

allows a person to learn from errors without allows a person to learn from errors without suffering ill effects on individual net worthsuffering ill effects on individual net worth

55

Distinction From Playing a Distinction From Playing a “Stock Market Game”“Stock Market Game”

The project is distinguishable from existing The project is distinguishable from existing “stock market “stock market gamesgames” for these reasons.” for these reasons. Our focus is Our focus is notnot on quick gains. on quick gains. Our focus is to raise awareness and to Our focus is to raise awareness and to

educate.educate. Our focus is to develop an appropriate Our focus is to develop an appropriate

attitude and approach for prudently attitude and approach for prudently managing financial assets.managing financial assets.

Our focus is to sharpen critical thinking, Our focus is to sharpen critical thinking, research, and math skills and to present research, and math skills and to present outcomes in a written report.outcomes in a written report.

66

Optional Internet SitesOptional Internet Sites

TheseThese

Internet sites Internet sites are just are just somesome of the of the available sites available sites providing free providing free portfolio portfolio tracking tracking capabilities.capabilities.

yahoo.comyahoo.com

marketwatch.commarketwatch.com

forbes.comforbes.com

money.cnn.commoney.cnn.com

investorguide.cominvestorguide.com

morningstar.commorningstar.com

kiplinger.comkiplinger.com

7

An Illustrative PortfolioCompany Name Stock Symbol

1. Microsoft MSFT2. Coca Cola KO3. Merck MRK 4. Proctor and Gamble PG5. Dell Inc. DELL6. El Paso Corp. EP 7. Bank of America Corp. BAC 8. Anadarko Petroleum Corp. APC9. Ford Motor Company F10. SBC Communications Inc. SBC11. Federal Express FDX12. Kraft Foods KFT13. Amgen Inc. AMGN14. Apple Computer APPL15. Wal-Mart Stores WMT16. Express Scripts ESRX17. Coach COH18. Petsmart PETM19. Napster NAPS20. Yahoo YHOO21. Google GOOG22. Barnes and Noble BKS23. General Electric GE24. Intel INTC25. Gillette G

88

Create a YAHOO PortfolioCreate a YAHOO Portfolio

Step 1: Step 1: www.yahoo.comwww.yahoo.com

Step 2: Click the Finance icon at the top, Step 2: Click the Finance icon at the top, left of the page.left of the page.

99

Step 3Step 3This brings you to This brings you to

If you have a Yahoo user ID and If you have a Yahoo user ID and password, click password, click Sign InSign In. To establish a . To establish a user ID and password, click user ID and password, click Sign UpSign Up and and follow instructions.follow instructions.

1010

Step 3, cont’d.Step 3, cont’d.

Don’t be surprised if your first Yahoo ID Don’t be surprised if your first Yahoo ID choice is already taken; this process choice is already taken; this process may take a few minutes. Be cautious may take a few minutes. Be cautious as you complete these steps. If you do as you complete these steps. If you do notnot want a Yahoo e-mail address, you want a Yahoo e-mail address, you do not have to establish one. Make do not have to establish one. Make certain you certain you un√un√ any boxes you do not any boxes you do not want checked. Once this process is want checked. Once this process is completed successfully, print the sheet completed successfully, print the sheet with your ID and password. with your ID and password.

1111

Step 4Step 4

Return to Finance home page. Return to Finance home page.

To the right of To the right of FINANCEFINANCE you will see you will see Welcome, your user ID.Welcome, your user ID.

1212

Step 5Step 5

Locate the Locate the My PortfoliosMy Portfolios tab. tab.

1313

Step 6Step 6

Click Click My PortfoliosMy Portfolios, and a drop-down menu , and a drop-down menu appears. (Portfolio Example is a sample portfolio, appears. (Portfolio Example is a sample portfolio, previously created.) Clickpreviously created.) Click Create PortfolioCreate Portfolio. Your . Your portfolio’s name will be listed at the top of the portfolio’s name will be listed at the top of the drop-down menu. If you create more than one drop-down menu. If you create more than one portfolio, each portfolio’s name will be listed at the portfolio, each portfolio’s name will be listed at the top of this menu. top of this menu.

1414

Step 7Step 7

The The Create New PortfolioCreate New Portfolio window opens. window opens.

Click Click Track your transaction historyTrack your transaction history..

1515

Step 8Step 8Give your Portfolio a name.Give your Portfolio a name.

Set Set PerformancePerformance as the Default view. as the Default view.

Accept the three default settings as illustrated.Accept the three default settings as illustrated.

Click Click ContinueContinue at the bottom of this window. at the bottom of this window.

1616

Step 9Step 9Two transaction options are available—Two transaction options are available—Security and Cash. First, click Security and Cash. First, click CashCash..

Type:Type: select select Cash InCash In from menufrom menu

Amount:Amount: $500,000$500,000 (a (a one-timeone-time onlyonly entry)entry)

1717

Step 9, cont’d.Step 9, cont’d.

If you click If you click SaveSave, you return to your , you return to your portfolio page. If you don’t have time to portfolio page. If you don’t have time to enter additional purchase transactions, enter additional purchase transactions, click click SaveSave..

If you click If you click Save and Create AnotherSave and Create Another, the , the Transaction page will re-appear. If you Transaction page will re-appear. If you are ready to purchase stock/s, click are ready to purchase stock/s, click Save and Create AnotherSave and Create Another..

1818

Step 9, cont’d.Step 9, cont’d.

Transaction:Transaction: SecuritySecurityDate:Date: use current dateuse current dateType:Type: select select BuyBuy from menu from menuSymbol:Symbol: may need to look upmay need to look upShares:Shares: total number you wish to purchasetotal number you wish to purchasePrice/Share:Price/Share: price of ONE share price of ONE share

(Verify the price per share; if you checked (Verify the price per share; if you checked the price hours ago or days ago, most the price hours ago or days ago, most likely it has changed.)likely it has changed.)

Commission:Commission: OptionalOptional, not required by project. (If you , not required by project. (If you choose to use this feature, use 1% of the choose to use this feature, use 1% of the total price which is price/share x no. shares.)total price which is price/share x no. shares.)

Notes:Notes: Type the full name of the company Type the full name of the company represented by the symbol.represented by the symbol.

1919

Step 9, cont’d.Step 9, cont’d.

Continue clicking Continue clicking Save and Create AnotherSave and Create Another to enter one transaction for each to enter one transaction for each company’s stock you are purchasing. company’s stock you are purchasing. When you run out of time, click When you run out of time, click SaveSave. The . The next time you sign in to Yahoo Finance and next time you sign in to Yahoo Finance and open your portfolio, click open your portfolio, click Create Create TransactionTransaction at the top, right of your portfolio at the top, right of your portfolio to add additional transaction/s.to add additional transaction/s.

2020

Step 10Step 10When you view your portfolio, you’ll see these 10 columns.When you view your portfolio, you’ll see these 10 columns.

Symbol - abbreviationLast Trade - time and value of last tradeChg - change from the closing price of the day before and last trade price Volume - number of shares traded from opening today and the last trade Shares – number of shares purchasedValue - current value of the shares of this securityValue Change - two parts, dollar value and percentagePaid - amount paid for one share of the securityGain - two parts, dollar value of gain to date from the purchase price and percentage gainRelated Information – next slide

Col. 10

2121

Step 11Step 11

The The Related InformationRelated Information section has four section has four columns. columns.

– ChartChart – produces a chart showing past years’ – produces a chart showing past years’ share pricesshare prices

– MessagesMessages – convey message board postings – convey message board postings relating to companyrelating to company

– ProfileProfile – delineates a profile of the company – delineates a profile of the company

– more…more… – produces additional pieces of – produces additional pieces of information relating to company’s information relating to company’s performanceperformance

2222

Step 12Step 12

This project requires a This project requires a Day’s RangeDay’s Range column. column. This column verifies the price paid by the This column verifies the price paid by the student is within this range. student is within this range. THE REPORT THE REPORT EVALUATORS WILL COMPARE THE PRICE EVALUATORS WILL COMPARE THE PRICE PER SHARE TO THIS COLUMN.PER SHARE TO THIS COLUMN.

(a) To add the (a) To add the Day’s RangeDay’s Range column, locate column, locate PerformancePerformance [edit]. Click [edit]. [edit]. Click [edit].

2323

Step 12bStep 12b

(b) On number 10 click (b) On number 10 click the down arrow and the down arrow and select select Day’s RangeDay’s Range. .

Day’s Range will Day’s Range will replace the replace the Related Related InformationInformation column column (so (so Day’s RangeDay’s Range will will view on printout).view on printout).

2424

Step 12cStep 12c

(c) On number 11 (c) On number 11 click the down click the down arrow and select arrow and select More InfoMore Info. .

Scroll to the Scroll to the bottom of the bottom of the page and click page and click FinishedFinished..

new column 10

2525

Step 12dStep 12d(d) Click File/Page Setup. (d) Click File/Page Setup. Set Orientation to Landscape. Set Orientation to Landscape.

2626

Step 12d, cont’d.Step 12d, cont’d.Click File/Print Preview. Click File/Print Preview. VERIFYVERIFY the the DAY’S RANGEDAY’S RANGE column will be column will be viewable on the viewable on the one-pageone-page printoutprintout. The . The Related InformationRelated Information column does not have to column does not have to be viewable. be viewable. Refer to the Refer to the Project TimeframeProject Timeframe handout ( handout (www.investedok.orgwww.investedok.org) to view the two required ) to view the two required dates to print the portfolio. dates to print the portfolio. Refer to the Refer to the Report RequirementsReport Requirements handouts ( handouts (www.investedok.orgwww.investedok.org) for the order in which to ) for the order in which to submit the printouts. It is not necessary to submit the printouts. It is not necessary to submit all the extra submit all the extra Recent NewsRecent News information; do information; do notnot submit. submit.

2727

Step 13Step 13

At the bottom of your portfolio columns, note At the bottom of your portfolio columns, note the the ValueValue and and GainGain totals. The totals. The ValueValue column column is the current total value of the portfolio. The is the current total value of the portfolio. The GainGain column represents the total gain or loss column represents the total gain or loss in the portfolio since initial purchases were in the portfolio since initial purchases were made; this column is represented in both made; this column is represented in both dollars and percent.dollars and percent.(next slide)(next slide)USD = US DollarsUSD = US DollarsDr. Horrell used $1,000,000 in this sample.Dr. Horrell used $1,000,000 in this sample.

2828

2929

Step 14Step 14

To Edit Transaction/s, click To Edit Transaction/s, click TransactionsTransactions tab. tab.

Note: The View if Performance. If you ever sign in to track your portfolio and its totals are missing, your portfolio is in a different view. Click Performance.

3030

Step 15Step 15

To create a new transaction, click To create a new transaction, click Create Create TransactionTransaction..

3131

Step 16Step 16If you click Edit Portfolio, you can delete your If you click Edit Portfolio, you can delete your portfolio. This is also the page to set the default portfolio. This is also the page to set the default view.view. your portfolio name

Click transaction page to return to your portfolio.

Remember to click Finished if you made changes.

3232

NOTESNOTES

1 2 3 4

56 7

3333

Notes (1)Notes (1)Real-time Mkt/ECN Quotes let you track the action in your Real-time Mkt/ECN Quotes let you track the action in your favorite stocks in real time—before the market has opened, favorite stocks in real time—before the market has opened, while the market is open, and after the market has closed. To while the market is open, and after the market has closed. To obtain a market quote, simply select the "Real-time obtain a market quote, simply select the "Real-time Mkt/ECN" link from the left hand menu available for all Mkt/ECN" link from the left hand menu available for all quotes. Real-time Mkt/ECN quotes are also displayed at the quotes. Real-time Mkt/ECN quotes are also displayed at the top of the Summary View every day starting at 4pm EST so top of the Summary View every day starting at 4pm EST so you can see how the stock is trading after the market has you can see how the stock is trading after the market has closed for the day. (closed for the day. (HelpHelp) ) Electronic Communication Networks (ECNs) are electronic Electronic Communication Networks (ECNs) are electronic marketplaces that bring buy and sell orders together and marketplaces that bring buy and sell orders together and match them with each other. Today ECNs handle roughly match them with each other. Today ECNs handle roughly 25% of the volume in Nasdaq stocks. (25% of the volume in Nasdaq stocks. (HelpHelp))Click Click Real-time ECNReal-time ECN link. A new view option allows you to link. A new view option allows you to click on one of your stocks to view in real-time. Scroll down click on one of your stocks to view in real-time. Scroll down to view the whole screen. to view the whole screen. This project does not use this This project does not use this feature. feature.

3434

Notes (2)Notes (2)

DetailedDetailed is a view option. Click it to check is a view option. Click it to check it out; you’ll see charts and more. it out; you’ll see charts and more. This This project does not use this feature.project does not use this feature.

Notes (3)Notes (3)Create New ViewCreate New View allows you to create and allows you to create and name a customized view. name a customized view. This project This project does not use this feature.does not use this feature.

3535

Notes (4)Notes (4)

Create TransactionCreate Transaction:: Click thisClick this link to create link to create a new transaction. This project a new transaction. This project doesdoes use use this feature.this feature.

Notes (5)Notes (5)Set AlertSet Alert: : This project does not use this This project does not use this feature.feature. Do not set; keep zero alerts. Do not set; keep zero alerts. You’ll get bazillions of e-mail messages.You’ll get bazillions of e-mail messages.

3636

Notes (6)Notes (6)

Portfolio EmailPortfolio Email:: This project does not use This project does not use this feature.this feature. Again, do not utilize. This Again, do not utilize. This feature allows Yahoo to bombard your feature allows Yahoo to bombard your inbox with messages.inbox with messages.

Notes (7)Notes (7)Download SpreadsheetDownload Spreadsheet transfers your transfers your portfolio data to an Excel spreadsheet. portfolio data to an Excel spreadsheet. This project does not use this feature. This project does not use this feature.

3737

Note the Note the Finance HomeFinance Home link at the top, right link at the top, right of the portfolio page—very top.of the portfolio page—very top.

Utilize the Utilize the HelpHelp feature if needed. feature if needed.Before printing your portfolio on the two Before printing your portfolio on the two dates listed on the dates listed on the Project TimeframeProject Timeframe (only (only twotwo required printouts), be certain the required printouts), be certain the Day’s Day’s RangeRange column prints. Remember to switch column prints. Remember to switch to Landscape orientation.to Landscape orientation.Refer to handouts and information on Refer to handouts and information on www.investedok.orgwww.investedok.org. .

3838

Investing vs. TradingInvesting vs. Trading

The portfolio tracking feature of The portfolio tracking feature of Yahoo provides a useful tool for Yahoo provides a useful tool for engaging students in investigation engaging students in investigation and involvement with the interactions and involvement with the interactions of the securities market.of the securities market.Putting a premium on the quality of Putting a premium on the quality of the analyses of companies and their the analyses of companies and their investment strategies encourages investment strategies encourages students to become investors, not students to become investors, not traders.traders.

3939

InvestorsInvestorsInvestors are individuals who…Investors are individuals who…

study and select companies involved in an study and select companies involved in an economically productive endeavor expected to economically productive endeavor expected to produce results for some time.produce results for some time.

buy shares in these companies and hold shares buy shares in these companies and hold shares for a considerable length of time.for a considerable length of time.

do not generally concern themselves with trying do not generally concern themselves with trying to make a to make a quickquick high return on their investment. high return on their investment.

realize attempts at quick high returns involve high realize attempts at quick high returns involve high risk.risk.

4040

TradersTradersTraders are individuals who…Traders are individuals who…study and use techniques in an attempt to beat study and use techniques in an attempt to beat the market.the market.do not plan to hold securities for substantial do not plan to hold securities for substantial lengths of time.lengths of time.believe the price of the security is going to believe the price of the security is going to move a fair amount in a move a fair amount in a shortshort time and hope to time and hope to make a profit from the price movement.make a profit from the price movement.basically believe security markets are not basically believe security markets are not efficient in any form.efficient in any form.may believe their skills and perceptions of the may believe their skills and perceptions of the market are superior to others in the market.market are superior to others in the market.

4141

Be Investors, not TradersBe Investors, not Traders

Fundamental analysis - foundation for sound Fundamental analysis - foundation for sound investment decisionsinvestment decisions

Continual exposure to sites like Yahoo may Continual exposure to sites like Yahoo may instill an appreciation of fundamental analysis.instill an appreciation of fundamental analysis.

The The News HeadlinesNews Headlines and and Press ReleasesPress Releases sections below the Yahoo portfolio provide sections below the Yahoo portfolio provide links to recent articles on selected companies.links to recent articles on selected companies.

Students have access to same information as Students have access to same information as investors.investors.

4242

Project GoalsProject Goals

Students will choose to be investors.Students will choose to be investors.

Students will research and invest wisely.Students will research and invest wisely.

Students will recognize the value of Students will recognize the value of allowing investments to grow long term.allowing investments to grow long term.

Students will identify a “hot tip” or a Students will identify a “hot tip” or a “really good deal” as a red flag.“really good deal” as a red flag.

Students will improve their quality of life.Students will improve their quality of life.

Jo Ann Murray, Project Jo Ann Murray, Project CoordinatorCoordinator

University of Oklahoma OutreachUniversity of Oklahoma Outreach1600 Jenkins Avenue1600 Jenkins AvenueNorman, OK 73072Norman, OK 73072

jmurray@ou.edujmurray@ou.edu405.325.6882405.325.6882

1.800.942.57021.800.942.5702405.325.7687 (fax)405.325.7687 (fax)

w w w . i n v e s t e d o k . o r g