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Class 1 Introduction

Canadian companys stock sp tsx index for us companys

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Canadian company’s stock: S&P TSX Index. For US company’s stock: Dow Jones Industrial Index for ‘Blue Chip’ companies, the S&P 500 for larger companies, and the Nasdaq Index or Nasdaq 100 for Tech Companies or relatively young companies.
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10 Aside (1): Equity Securities K Common Stocks (Equities, Equity Securities) Issued by corporations. – Represent ownership shares in a corporation. K Each share entitles owner to one vote in matters of corporate governance at annual shareholder meeting. Owners of shares are entitled to financial benefits. K Payments made to shareholders are called dividends. Corporations are controlled by Board of Directors, whose members are elected by the shareholders. The Board of Directors hires the firm’s managers, who conduct the day- to-day operations of the corporation. K The Board should ideally monitor and oversee management’s actions. K In reality, the Chairman of the Board is often the CEO (Chief Executive Officer, top manager) of the corporation.
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Aside (2): Stock Market Indices K Stock market indices are composed of stocks of many companies. K They are used as proxies for the overall market. K They are also used as a benchmark to measure portfolio performance. K The most famous indices in the US are: Dow Jones Industrial Index K Composed of 30 large, publicly traded US companies (Blue Chip Companies) K Most widely followed index, despite limitations S&P 500 Index K Based on common stock prices of 500 large US companies traded on New York Stock Exchange or Nasdaq. Nasdaq Composite Index K Contains all stocks traded on the Nasdaq stock exchange Based on common stock of more than 3000 companies Includes foreign stocks Contains a lot of technology and younger companies.
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