III. INVESTING B. Investing Options 1. Stocks 2. Bonds 3. Mutual Funds 4. Real Estate 5. Retirement Accounts

Stocks What they are Stock represents ownership of a corporation. Stockholders own a share of the company Entitled to a share of the profits Vote in how the company is run. teens – lesson 12 - slide 12-K

Stocks How earnings are made Company profits may be divided among shareholders in the form of dividends. Dividends are usually paid quarterly. Larger profits can be made through an increase in the value of the stock on the open market. teens – lesson 12 - slide 12-K

Stocks & Supply vs. Demand The stock exchange is organized based upon the laws of supply and demand Supply is the relationship of prices to the quantities of a good or service sellers are willing to offer for sale at any given point in time Demand is the relationship of prices to the quantities and the corresponding quantities of a good or service buyers are willing to purchase at any given point in time.

Stocks Advantages If the market value goes up, the gain can be considerable. Money is easily accessible. Disadvantages If market value goes down, the loss can be considerable. Selecting and managing stock often requires study and the help of a good brokerage firm. teens – lesson 12 - slide 12-K

ASSIGNMENT How to buy stocks – play Buying Stocks – pdf file