COPYRIGHTED MATERIAL
The Big Picture Securities can be in the form of debt , which are notes and bonds, or equity , which are shares of a corporation. An investor who holds bonds or notes is entitled to interest and repayment from the issuer. There are two kinds of stock: common and preferred . Common stock is entitled to a dividend only at the vote of the board of directors. A stock investor buys shares with the hope that value of the stock will rise over time. Governments issue bonds as a means of borrowing money from the public. Treasuries are bonds, bills, and notes issue by the U.S. Department of the Treasury. Securities are traded via securities exchanges. The joint stock company is the forerunner to the modern day corporation. There are many stock exchanges around the world, but the NYSE, started by a group of merchants and business owners in 1792, is the largest. Let’s Practice! Select from the following practice activities: Let's Practice: HealnnHeels Goes Public! (In class activity. Complete as a whole-class or teams.) Let's Practice: Debt vs. Equity Securities Exploring 21st Century Skills and Issues: Side Trip to the U.S. Securities Exchange Commission Ponder and Predict There are about 2800 companies listed on the NYSE, and hundreds of thousands more listed on other stock exchanges around the world, such as the NASDAQ, AMEX, Tokyo and London Stock Exchanges. So many companies! How does an investor decide which stock to buy? How do they determine if a share of stock is worth what it’s trading for? Write your predictions here and in the next lesson, find out if you are correct! Assign • Blog, debate, discuss: Can racial or gender inequality inhibit the growth the commerce? In your answer, consider the economies of countries that do not promote racial or gender equality. This will take some research! SLIDE 14N SLIDE 14M PRODUCT PREVIEW
• To prepare for the next lesson: read Chapter 15 of the student workbook. • Watch business or financial news at least 15 minutes per day: Bloomberg West (www.bloomberg.com/video/bloomberg-west)
The Street Business News (www.thestreet.com) Reuters (www.reuters.com/video/technology) • Each week compare and contrast tweets from students' selected financial journalists. Compare journalists' opinions about events and stories.
Lesson 14 | Who Put the Wall in Wall Street? 266
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