In this lesson, you will learn: - What are stocks and why they matter - Why people invest in stocks - What terms like 'Bid Price' and 'Market Volume' actually mean For more, go to Wealthlift: http://bit.ly/JPPV2V

1. Lesson 1: What is Stock Investing?
In this WealthLift video lesson, you will learn:
• What are stocks and why do they matter?
• Why do people invest in stocks?
• What do terms like ’Bid Price' and
'Market Volume' actually mean?
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

2. Lesson 1: What are stocks?
A stock or sharerepresents ownership
in a piece of a company.
The stock price of a company is the current
market price of a single stock in that
company.
Stocks are traded on a stock exchange, such
as the New York Stock Exchange (NYSE) or
the NASDAQ.
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

3. Lesson 1: What are stocks?
Buyers put Sellers put in
in a bid an ask price,
price, or the or the price at
price at which they
which they are willing to
are willing to sell a stock
buy a stock for.
for.
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

4. Lesson 1: What are some of the key terms?
The number of stocks of a single
company being traded over any period
of time is known as its market volume.
Market Capitalization = Current Stock Price x No. of Outstanding
Shares
The market capitalizationof a company is
its total value, as determined by the stock
market.
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

5. Lesson 1: What are some of the key terms?
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

6. Lesson 1: Why do people invest in stocks?
Stocks can appreciate in price, creating capital
gains, or an increase in the value of your
assets, which grow your wealth.
Companies generate earnings, or
profits generated from providing goods
and services.
Shareholders in companies are
compensated for their risk through a risk
premium.
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

7. Lesson 1: Why do people invest in stocks?
$10,000 invested from 1964 to 2010: Stocks, Bonds, Savings,
Gold
Stocks:
$714,925
Gold:
$405,057
Bonds:
$220,619
Savings:
$172,537
[1]Historical Stock, Treasury bond data: Federal Reserve of St. Louis
[2]Historical Gold price data: Kitco.com historical gold charts
[3]Historical 6-month CD Savings rate data: Federal Reserve Historical 6-month CD interest rates
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.

8. Congratulations – Lesson 1 Completed
In the next WealthLift video lesson, you will learn:
• What is an investing style and why do I need
one?
• How much should I invest in the stock market?
• Why should I invest in different sized companies?
• What sort of companies should I invest in?
Depictions of persons. product names and images modeled in this video are trademarks of their
respective owners who do not endorse and are not associated or affiliated with WealthLift Inc.
©2011 WealthLift Inc. All Rights Reserved.