Investing: Taking Risks With Your Savings

 Part Owner of Corporation  Funds for expansion  Stock Returns ◦ Stockholders ◦ Dividend, return on investment ◦ Speculate, bet on stock increase, sell  Capital Gains and Losses ◦ Rise and fall of stock price

 Bonds ◦ Corporation or Government ◦ Interest paid over time  Tax-Exempt Bonds, local, state, and fed issued  Savings Bonds  T-Bills, short term  T-notes, 2-10 years  T-bonds, 30 years

 Broker, buys and sells stocks  New York Stock Exchange, NYSE ◦ Financially strong companies  NASDAQ, over the counter stock  Dow Jones Industrial Average, The Dow ◦ 30 major industrial companies

 Mutual Funds ◦ Pools funds ◦ Buys stocks  Money market funds ◦ Funds for loans to business and banks  Securities and Exchange Commission ◦ Enforcement