evaluating a stock issue | Focus on Personal Finance, 7e

Posts Tagged With: evaluating a stock issue

Stock Investing for Dummies

Posted on December 20, 2014 by Melissa Hart

To make the most of your money and your choices, educate yourself on how to make stock investments confidently and intelligently . . .”

This article can be used to help reassure people who are afraid to make their first stock investment. Specific topics in the article include

The Ten Most Important Points about Stock Investing
Checking Important Company Fundamentals Before Investing in a Stock
Financial Measures to Consider before Investing in a Stock
A Mandatory Reading List for Stock Investors
Reassuring Points for Nervous Stock Investors

Information in each of the above topics is explained in a straight-forward and easy-to-understand format beginning investors can understand. The last topic, Reassuring Points for Nervous Stock Investors is especially important for people reluctant to invest in stocks.

For more information go to http://www.dummies.com/how-to/content/stock-investing-for-dummies-cheat-sheet.html

Teaching Suggestions

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

Reinforce the benefits of a long-term investment program. Be sure to point out that the value of quality stocks usually increases over a long period of time–a concept stressed in the text.
Stress the importance of evaluating a stock before investing your money.

Discussion Questions

What are the benefits of a long-term investment program that includes not only stocks, but also mutual funds, bonds, and other investment alternatives?
Why are people afraid to invest in stocks?
What steps can you take to overcome the fear of investing in stocks?

Categories: Chapter_12, Investments | Tags: evaluating a stock issue, investment decisions | Leave a comment

Plunging Crude Prices Hammer Energy Companies

Posted on December 17, 2014 by Melissa Hart

“A decision by OPEC this week to maintain current levels of oil production is hammering major energy companies in the U.S. and abroad.”

This article explores the winners and losers of lower energy prices. For consumers, lower energy and gas prices means increased discretionary funds for purchasing consumer goods including food, clothes, electronics, and presents for friends and relatives during the holiday season. Also, both large and small retailers benefit because consumers have more money to spend. And airlines, package delivery services, cruise lines, and other companies are spending less on fuel.

The disadvantages of lower energy and gasoline prices are already causing the stock prices of big oil companies including Chevron, ConocoPhillips, Exxon Mobil, Marathon Oil, and British Petroleum to decline.

For more information go to http://finance.yahoo.com/news/plunging-crude-prices-hammer-energy-companies-123639239–finance.html

Teaching Suggestions

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

Discuss the impact of the cost of energy and gasoline on a consumer’s budget.
Describe alternatives uses for the savings that result from lower energy and gasoline prices.

Discussion Questions

What is the current price for a gallon of gasoline? How does this compare with the cost 6 months ago? What impact does this have on your spending patterns and your personal budget?
While you are saving money at the pump, the big question may be how you plan to use the savings. Are there alternatives to spending the money on clothes, entertainment, or holiday gifts?
Now that the value of energy company stocks has declined, would you invest in a company like Exxon Mobil or Chevron? Explain your answer.