Stocks & Stock Market
Common Stock - Ownership shares in a publicly
held corporation.
Secondary Market - market in which already
issued securities are traded by investors.
Dividend - Periodic cash distribution from the
firm to the shareholders.
P/E Ratio

Present Values (PV)
Future Values (FV)
E.g. If we have $1,000 today that we put in an exchange-traded fund that
will generate 12% per year for the next two years, how much will we have
in the account in two years?
P
V
.
C
C
1
2
(1
r)(1
r)
Present Values
P

1.2
1
1. :
1 x
5x x2
(1)y ln( x 4);(2) y ln
;(3) y ln
;(4) y
1 x
4
1
2
2 x 5x 3
2
.
(1)x 2 4 0,| x |2 4,| x | 2, D (, 2) (2, ).
(2)
1 x 0 1 x 0
1 x
0.
. 1 x 1, D (1,1).
1 x
1 x 0 1 x 0
5x x2
1, x 2 5 x 4 0.x 2 5 x 4 0, ( x 1)( x 4) 0, x1 1, x2 4.
4
D