How to Invest in Stocks

“Before you buy your first stock, you should master the basics of stock investing.”

This article provides basic information that you can use to help students learn more about investing.  For example, there are over 25 different links to more detailed information including:

  • Basic Stock Terms for Beginners
  • What Is a Balance Sheet?
  • What Is an Income Statement?
  • What Is Investment Risk?
  • How to Buy Your First Stock
  • How to Value Stocks
  • How to Analyze Stock Fundamentals

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to:

  • Stress the importance of learning about stocks before making a stock investment.
  • Use a specific link(s) and show how students can use detailed information to become a better stock investor.

Discussion Questions

  1. Assume you are 35 years old and have $40,000 for investment purposes. Would you choose stocks or some other investment alternative?  Explain your answer.
  2. Access one or two of the links listed in this article. How could the information in this link help you evaluate a possible stock investment?

Procter & Gamble’s Allen Lafley on Activist Investors’ Watch List

“With most of the Dow 30 companies up for the year, investors should be heartened that P&G remains in the ‘bargain bin.'”

In this article, Marc Courtenay describes the financial information investors can use to evaluate an investment in Procter & Gamble, a large global company with a worldwide customer base of 4.8 billion people.  Information in this article includes a discussion of P&G’s

  • Efforts to reduce costs by $10 billion.
  • Current stock price and future price predictions.
  • Decision to increase its dividends to stockholders.
  • Projections for earnings growth and the anticipated effect on the stock’s share value.

For more information go to  http://www.thestreet.com/story/12766334/1/procter-gambles-alan-lafley-on-activist-investors-watch-list.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of using financial information when evaluating a corporate stock for investment purposes.
  • Discuss how financial information (dividends, earnings per share, dividend payout, etc.) relate to the share value for a stock like P&G.

Discussion Questions

  1. Because P&G is a large global company with a customer base of 4.8 billion people and is a component in the Dow Jones Industrial Average, do investors still need to evaluate the company before investing in its stock?
  2. Why are financial measures like dividends, earnings per share, dividend payout, and projections for earnings growth important when evaluating a stock investment?