3rd Group

STOCKS AND
SHARES
Technical English II
Professor: Mr. Vicente
GROUP MEMBERS
Zachary Olmos | A00089149

Cristi Troncoso | A00106730

Laura Belen | A00099121

Noely Pujols | A00103232

Maria Gaton | A00101438

Eva Troncoso | A00107006

What are stocks and shares?
A stock is a form of security that represents the
ownership of equity in a corporation. Shares are
units of stock, everybody who owns shares is called
a shareholder. They are entitled to some of the
company’s assets and profits.
How do they work?
Companies sell shares in
their business to raise
money. Once a
company’s stock is on the
stock market, it can be
sold and bought among
investors.
How did the
stock market
start?
 How does it work?
A company goes The company
01 public
Investors take a crack at the
company’s Initial Public Offering.
02 grows
The market value of the
company is boosted.

The company
Business booms
03 makes money
More people will invest if the
company is profitable.
04 As business grows more investors
trade the stocks.
Stock market stages
The stock cycle is the evolution of a stock’s price and it’s divided into many
stages:

1. Accumulation stage: it is the first one and happens after the market
has bottomed out in the previous cycle. This is the best time to invest
because prices can rocket at any time.

2. Mark-up stage: when markets consolidate.

3. Distribution stage: occurs after the consolidation, when prices have

risen.

4. Mark-down stage: it is the final stage of the cycle.

 Stock market trends
A trend is the direction of the stock’s price,
there are three main trends:

1. Uptrend: prices go up, the market

sentiment is positive and a bull market
happens.

2. Downtrend: when the stock’s price

goes down and a bear market
happens.

3. Sideways trend: when supply and

demand are nearly equal.
Roles in the stock market
Many people get involved in the stock
market process, depending on what they
do, these people can be:

1. Stock trader
2. Stockbroker
3. Investment banker
4. Jobber
5. Sub broker
6. Dealer
Why should you invest in the stock market?

1. Protects your money from inflation and taxes.

2. Maximizes income.

3. Provides dividend income.

4. As a shareholder you become a part of the

corporate board.
 Final takeaways
- Investing in the stock market can be an efficient way of
earning money.

- The market is sometimes unpredictable, which is

something to analyze before entering the industry.

- Not everybody wins, depending on the company people

invest in, they can end up with profits or losses.

- Stock value is sensitive to many things, including

customer demand and the overall economy of the country.
Thank you!