Basic Functionality Of The Stock Market & Performance Indicators

Business Finance

Research: Learn the key terms and basic functionality of the stock market.

  1. Research the stock market. What is a stock? What is a share? What is an exchange? Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i.e. NYSE, NASDAQ). What types of companies are traded on each?
  2. Research stock market performance indicators, such as the DOW Jones and S&P 500. What do the indicators measure? How do they help predict the performance of the market? What are their flaws?
  3. Research the sectors of the market. Identify three companies in each sector.
  4. Research companies in which you would invest. What characteristics do they have that make them good prospects? In other words, why might you choose to invest in each one of them?
  5. Compile the answers to these questions in a research report consisting of four to five well-developed paragraphs. This will be the first part of your Research Project.
  6. Make sure you give credit to the sources you use. (MLA Format)
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