Try to find the stock price of TACO BELL.

What did you discover?

PARENT COMPANIES
One company is actually owned by another.
If you want stock in one, you need stock in the
Parent Company.
The next slide shows some companies owned
by Parent Companies.
Who owns TACO BELL?

PARENT COMPANIES

FIND THE PARENT COMPANIES OF:

TYLENOL
THE BODY SHOP
SKIPPY PEANUT BUTTER
WHISKAS
M&MS
JELL-O
GERBER

FIND THE PARENT COMPANIES OF:

TYLENOL - (Johnson & Johnson)
THE BODY SHOP - (LOreal owned by NESTLE!)
SKIPPY PEANUT BUTTER (Unilever)
WHISKAS (Mars)
M&MS (Mars)
GERBER (NESTLE)

BIG VS. SMALL COMPANIES

Need to look at their Market Cap
MARKET CAPITALIZATION = What SIZE a
COMPANY is
*If I bought ALL of their shares how much
would that company be worth?
*# of shares TIMES the price per share = total

MARKET CAPITALIZATION
EXAMPLE:
A company has 35 million shares, each with a
market value of $100.
35,000,000 x $100 per share
The company's market capitalization is $3.5
billion.

VIDEO : MARKET CAP

Large Cap: $10 billion plus
Mid Cap: $2 billion to $10 billion
Small Cap: Less than $2 billion

FIND THE MARKET CAP:

Use www.finance.yahoo.com
IN the LEFT COLUMN, enter the symbol.

FIND THESE MARKET CAPS:

APPLE, INC. (AAPL)
SONIC (SONC)
DICKs SPORTING GOODS (DKS)

FIND THESE MARKET CAPS:

APPLE, INC. (AAPL) $621.61B
SONIC (SONC) $1.69B
DICKs SPORTING GOODS (DKS) $6.35B
What size is each?

WHY DOES MARKET CAP MATTER?

SIZE

POSITIVE

NEGATIVE

LARGE

Less likely to go out of

business
Can handle changes in the
economy
Stable

May earn less

MEDIUM

Companies that may still be

growing = $$$
Last 20 years, Mid Caps
have outperformed Lg &
Sm Caps

Not as stable as large

Riskier if economy starts
slowing down

SMALL

Good during times of

economic growth
Can get a company before
it is well known

Can go out of business

Harder to research

What about our examples?

APPLE, INC. (AAPL) $621.61B
SONIC (SONC) $1.69B
DICKs SPORTING GOODS (DKS) $6.35B
What do the Market Caps tell us about these
companies? What are positives/negatives for
each?

SO HOW DO I MAKE MONEY?

FIRST,
Sell your stock when it is worth more!
John bought a share of Apple stock in 1980
when it came out for $22. He sold it in
September 2012 when the stock price hit
$702.10 per share. He made $680.10!

BUT WAIT!
Say John didnt just have 1 share but 100!
In 1980 John spent $2200 for 100 shares of
Apple.
In September 2012 he sold each share, and
made $680.10 for each share
Thats $68,010!!!

SO HOW DO I MAKE MONEY?

SECOND,
Buy a stock that pays DIVIDENDS!
When the company does well, they may give
you a small bonus in either cash or in more
stocks.

VIDEO : DIVIDENDS
Watch the video about dividends to see this
method of earning money from stocks.

DIVIDENDS
Large Cap stocks are more likely to pay
DIVIDENDS than Small Cap stocks.
EXAMPLE :
Delta Airlines (DAL)
Pricer per share = $45.84
Div $0.36 for each share (0.80%)

DIVIDENDS
EXAMPLE :
Paul has 100 shares of Delta Airlines. Each
share pays a dividend of $0.36.
100 X $0.36 = $36
Paul got $36 in dividends from his Delta stocks.

DIVIDENDS : Our examples?

APPLE, INC. (AAPL)
SONIC (SONC)
DICKs SPORTING GOODS (DKS)
Use www.finance.yahoo.com to find if these
pay dividends and how much?

DIVIDENDS : Our examples?

APPLE, INC. (AAPL) Div 1.88 (1.80%)
SONIC (SONC) Div 0.36 (1.10%)
DICKS (DKS) Div 0.50 (1%)

STOCKS THAT SHOULD PAY

DIVIDENDS, BUT DONT

What are the Market Cap sizes of these companies?

FIND OUT MORE

USING THE COMPANY/PROFILE tabs on the
left in Yahoo Finance
Find the:
Industry
Sector
About the location
Location
Year founded
Top Paid Executives

LEARN MORE : BIIB

Find the:
Industry
Sector
About the location
Location
Year founded
Top Paid Executives

ACTIVITY
FIND THIS INFO:
Price per Share // MARKET CAP // S-M-L //
DIVIDENDS // INDUSTRY, SECTOR // 1 thing
about // HEADQUARTERS // Year Founded //
CEO Pay