1. Types of Checks, Other Than Personal
Single Survival
Mrs. Swope
Columbian High School

2. Types of Checks
Travelers’ Checks: safe alternative to using cash or credit while traveling; sold in denominations of 20’s and 100’s. May have to pay a fee for use, checks must be signed in the presence of the issuer and counter signed at the time of making a purchase.

3. Types of Checks cont.
Certified Check: a personal check the bank guarantees to be of sufficient funds. The bank guarantees it will not bounce. Fee for this service.
Cashiers Check: a check that is drawn against the bank’s account. The bank officer signs the check, bank is obligated to pay. Fee for this service.

4. Types of Checks cont.
Money Order: a one time use check, purchased for a specific amount, obtained from various stores or businesses (gas station, convenience stores, post office)
Wiring money can be done electronically through Western Union, fee for service.

5. Basic Investment Terms:
Investment: a tool used to produce more income from current income.
Risk: the chance of losing all or part of the money invested. All investments have a risk factor.
Liquidity: how easily the investment can be converted to cash with little or no cost.
Dividends: the stockholders profits from the stock.

6. Types of Investments
BONDS: interest earning “IOU” sold by the government or corporation to raise money.
Treasury bonds: issued by the federal government.
Municipal bonds: issued by the city, county, or state government.
Corporate bonds: issued by private companies.
Bonds are usually safer than stocks; initial investment is usually around $1,000-$3,000.

7. Types of Investments
STOCKS: purchasing partial ownership in a company (buy shares).
Stockholders share in the profits and the losses.
Stocks are purchased from a licensed stockbroker, may be traded on-line, fees are attached.
Risk: varies according to the company and economic conditions.

8. The Market
Bull Market: the cost of stocks are rising, it is an optimistic market.
Bear Market: stock prices are falling by 15% or more.

9. Types of Investments
MUTUAL FUNDS: pooling of money from many small investors into one large fund. A professional money manager invests the money into many different stocks, bonds, and other investments.
Risk: less risk because money is invested in many different investments

10. Types of Investments
REAL ESTATE: includes vacant land, farmland, and any structure built upon it.
Includes: houses, condominiums, commercial, and industrial buildings.
The value of real estate is affect by the economy and surrounding properties .
When ready to cash in on the investment, must find a buyer, may take months or years.

11. Summary There are many forms of investments to choose from.
Research a variety of investments before purchasing. Know the risks.
Don’t invest any money you cannot afford to lose.
Have financial goals in mind and match your investments to your financial goals.