V You will purchase and track stocks during the

simulation.
V Use the Internet to track your stocks
V A stockholders· meeting for Mean Jeans is scheduled for
July 23.
V The manager of Noveau will come to the Instructor on
July 19 to find out if the meeting will be held and the
tentative agenda.
V If managers are absent on the day of July 23, they will
need to vote by proxy.
V ëonducting a Stockholders· Meeting
V Generic stock certificates
V Mean Jeans stock certificates
V New York Stock Exchange
V Notice of Mean Jeans Manufacturing ëo.
Annual Stockholders· Meeting
V Proxy cards
°


V All managers will purchase stocks during July.

V Because there are no coins provided, the manager of
Noveau should round to the nearest dollar when
accepting payments for shares of stock
V The manager of Hollywood and Vine Videos should
also round to the nearest dollar on video rentals.
V Be sure that you are rounding correctly

V   x an organization whose
members buy and sell stocks and bonds
for companies and investors
V Stocks are also called
  

V The two largest stock exchanges in the US

are the
ë New York Stock Exchange (NYSE)
ë American Stock Exchange (AMEX)

V Managers will receive two stock certificates during the simulation.
V The manger of Noveau will prepare a generic stock certificate for
each purchase of stock.
V Stock certificates for Mean Jeans Manufacturing ëo. are provided so
that managers can vote their shares at the annual stockholders·
meeting on July 23.
V Managers who are not participating in the stockholders· meeting
will vote by proxy.
V Proxy cards should be mailed to Mean Jeans on July 20.
ë  

V The concepts and skills taught in Unit 10

would be essential in the following
careersx
ë Actuary
ë Financial analyst
ë Financial planner
ë Investment analyst
ë Stockbroker

V  
x a group of stocks owned by
many small investors who pool their
money.
V One of the advantages of owning mutual
funds is the idea of diversification
(spreading the risk of investing)

V Managers will track their stock·s price
three times using the NYSE Guide.
V Managers should give this form to the
Instructor, not to the manager of Noveau
V Place in the folder labeled New York
Stock Exchange Guides

V Some companies have electronic
stockholders· meetings (by telephone
and/or the Internet).
V For more information on electronic
stockholders meetings, check out Real
ëorporate Lawyer
°


V Two pages of instructions for conducting

the stockholders· meeting will be given to
managers of Noveau by the Instructor
°


V Œeminderx You are to carry your Mean Jeans stock

certificates and the Student Œeference Books to the
meeting.
V The manger of Noveau will record each manager·s
number of shares of stock.
V Managers will use the Student Œeference Book to examine
Mean Jeans· balance sheet and statement of income.

V You might consider doing some
additional reading about how to build
wealth.
V An excellent resource is Œich Dad Poor Dad
by Robert Kiyosaki.
V It is easy to read and contains powerful
messages about how people think about
money.

V The average profit margin for manufacturing businesses
in the US is between 4% and 5%.
V Mean Jeans· profit margin this year is 4.3%, as shown on
the statement of income on page 317.
V Look at the breakdown of assets and liabilities on the
balance sheet. See page 316 in the Student Œeference Book.
V ë

 include cash and assets
that could be easily converted into cash.
V Property and equipment are considered
O
 because they will be used for
many years.
V   are unseen assets, which are
hard to value.
V Examples of intangibles are
ë Patents
ë ëopyrights
ë Trademarks
ë Goodwill
Ô £     include both current debt and
long-term notes.

V Π
   are earnings not yet

distributed to stockholders.

V Stockholders· equity is also known as 


.



 

V Insider trading involves the use of information that

individuals gain through their positions that allows
them to benefit unfairly from fluctuations in stock
prices.
V Penalties for insider trading include fines and/or
imprisonment.
V The 
 
 ë  ë closely
monitors sales of stock on the various exchanges.

V If there is more than one manger in a
business, each manager will have his or
her own stock certificate.
V One manager may receive more shares
than another manager.

V Before the stockholders· meeting, view the following
statementx
ë It is rumored that Mean Jeans is planning to build a facility in
Mexico. Employees are worried about their jobs and
stockholders are concerned about how the expansion will
affect their stock holdings. When you attend the
stockholders· meeting be prepared to discuss the implications
of how this rumored expansion will affect the local facility in
Pettisville and you as a stockholder.