1. BizWiz Lesson 4

2. Review Stocks are ___________ in a company. Owning stock means that you own part of the ___________. The ________ of each share is determined by what someone is willing to pay for it. Venture capital is money invested in ____ companies in return for partial _________ of the business. Venture capital is invested over a ______ period of time in hopes of a big ______.

3. Venture Capital Venture capitalist- a person who invests cash in a new and innovative business. Venture capital- money invested in new companies in return for partial ownership of the business. Is invested over a long period of time Money is pooled with other investors Company in which the money is invested chosen by the venture capitalist

4. Collectibles An object with a value that is expected to increase over time Examples: artwork, classic automobiles, sports memorabilia Safe or risky?

5. Real Estate Property in form of land or buildings Usually for commercial, residential, or industrial purposes Examples Safe or risky?

6. Bonds Cash loan issued to a company or government for a specific period of time in return for a fixed amount of interest Examples Safe or risky?

7. Certificate of Deposit (CD) Written certificate from a bank that it has received a specified sum of money as a deposit for a fixed period of time at a set interest rate. Safe or risky? Work differently in BizWiz

8. Insurance A policy purchased by the investor to protect against damage or loss Not an investment because it doesn’t generate a return Examples BizWiz will offer insurance for collectibles and real estate

9. Review Collectibles are _______ with a value that is expected to _______ over time. For example, paintings, classic cars, or ______ baseball cards. Real estate is ________ in the form of _______ or ________. It is usually used for _________ (office buildings), _______ (houses or apartments), or ___________ (factories or warehouses) purposes.

10. Review A bond is a ______ to a company or government. In return, they pay you a _____ amount of ______ over a certain period of time. A CD, or Certificate of ______, is written acknowledgement from a ________ that it has received a specified sum of money as ______ for a fixed period of time at a _______ interest rate.

11. Insurance Insurance________ your investment. Real estate insurance protects your _______ against loss of title and natural ________ such as fire. ___________ insurance protests against theft, loss, and/or maintenance costs.

12. Safe vs. Risky Investments Determine if each type of investment would be safe or risky. Venture capital Collectibles Real estate Bonds Certificate of Deposit Insurance

13. How do CDs work in BizWiz? $100 denominations Purchased at the beginning of Q1 Must be held for a year Guaranteed fixed rate of 10% Returns paid at end of Q4

14. Diversification Investment portfolio-a collection of investments Is it wise to invest all of your money in one stock? Is it wise to invest all of your money in one type of investment? Diversification- the distribution of assets among a variety of investments that have different characteristics and risk levels

15. Investment Portfolios Create a diversified portfolio What kinds of investments would you expect to find in a risk averse investor’s portfolio? What kinds of investments would you expect to find in a risk tolerant investor’s portfolio?

16. Risk vs. Return