NYSEThe Stock Exchange and us

INTRODUCTION What the financial market is The role of stock markets The difference between a capital stock

and a bond Why companies offer stock to the public Why people buy and sell stock Why stock prices change How indices are used to measure the

stock markets

THE FINANCIAL MARKET

Financial securities

Commodities

Money

THE ROLE OF STOCK MARKETS

Raising of capital

Transfer of risk

Transfer of liquidity

THE DIFFERENCE BETWEEN A CAPITAL STOCK AND A BOND

A stock: - shares of capital stock

- Owners

- Dividend

A bond:- Shares of loan

- Lend

- Interest + capital paid back

WHY DO COMPANIES OFFER STOCK TO THE PUBLIC

Profit

Raise capital

WHY PEOPLE BUY AND SELL STOCK

Make profit

WHY STOCK PRICES CHANGE

More buying => stock prices rise

More selling => stock prices fall

HOW INDICES ARE USED TO MEASURE THE STOCK MARKETS

CAC 40

Dow Jones

S&P 500

…

SUMMARY