The Corporation

• To raise cash, a corporation will coordinate an initial public offering, IPO, where it sells shares of stock to investors. In exchange for putting up cash, the investors receive shares of stock and are, therefore, part owners of the corporation. As ownership stakes, stock market values shift along side corporate profits. For example, you would expect share prices for a technology company to increase upon news that a release of new software is selling well in stores.
  
  

Stock Ticker

• You will monitor the stock ticker for real-time information on stock prices. The stock ticker displays the price and volume for the most recent trade of a particular stock. Volume describes the amount of shares that have exchanged hands upon each trade. The stock ticker stream begins with a ticker symbol, which is used to identify each individual stock. To learn a corporation's ticker symbol, you can visit its official website and click on the investor relations link. From the investor relations link and annual report, you can also look up the number of outstanding corporate shares. You will multiply a corporation's share price, times its shares outstanding, to calculate market capitalization. Market capitalization is a way to measure the value of the entire corporation.
  
  

Stock Market Index

• A stock market index helps you gauge the performance of the overall market and economy. In America, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are the three major stock market indexes. The Dow and the S&P 500 track large capitalization stocks, such as General Electric and Exxon. Alternatively, the Nasdaq Composite Index is associated with technology companies, such as E-Bay and Apple Corporation. Your portfolio of American stocks is likely to be making money on days when the Dow, S&P 500 and Nasdaq have all advanced by more than one percent.
  
  

Federal Reserve Board

• The Federal Reserve Board manages the interest rate environment to influence the economy. In a recession, the Fed lowers interest rates to encourage people to borrow, spend and or invest money to stimulate the economy. For corporations, lower interest rates translate into reduced borrowing costs, improved profits and generally higher stock market prices. As the economy recovers, the Fed will drive interest rates higher to guard against inflation. Be advised that high interest rates may cause future stock market prices to deteriorate.
  
  

Strategy

• You can put together a diversified portfolio of stocks and bonds to manage risks and provide for long-term growth. Stocks perform well during a strong economy, but are especially volatile amid a recession. Alternatively, bonds generate interest income to stabilize your portfolio in most economic conditions. You should buy more bonds for your portfolio, as you age and near retirement.