1. Where to Buy Stocks and Bonds

2. Major Markets NYSE – New York Stock Exchange
AMEX – American Stock Exchange
NASDAQ –
DOW or DJIA – Dow Jones Industrial Average top 30 companies in America
S&P 500 – top 500 companies in America

3. Full Service Brokerage Firms
Give investment advice
Offer a wide variety of financial products and services
Charge higher commissions

4. Discount Brokerage Firms
Do not give investment advice
Offer a limited number of finanacial products and services

5. Buying online Buyers pay lower commissions
Buyers can more easily compare brokerage services

6. Dividend ReInvestment Plans DRIPS
Many large companies offer DRIPS
Stockholders are paid dividends in the form of stock
No commission fee is charged

7. What to look for in a Mutual Fund?
Look at paper 7-3
Charge lower commissions

8. What is a mutual fund?
Pool of money from investors used to purchase numerous stocks

9. Who is in charge? Choose a company which has numerous funds.
A fund manager then takes your money and invests in a particular fund of your choosing

10. What is the risk? Savings account CD – Certificate of Deposit
money-market funds
bonds funds
mutual funds
Income funds (high-yield stocks and bonds)
Growth funds (larger company stocks)
Aggressive growth funds (smaller company stocks)
stock funds
Real Estate

11. How to pick a mutual fund? (new subject)

12. Performance
most important
risk willing to take
fund manager

13. Fees load - sales commission management fees
front-end – pay up front
back -end – pay when you sell
they will help you decide what to do
management fees
12b-1 used to advertise the fund to the public

14. Convenience buy small amounts? statements easy to read
fund families have different goals you could invest in
knowledgeable, helpful

15. So why a mutual fund? Professional Management Diversification
Liquidity
Investment objective

16. Order of risk and reward of investments:
·       Savings account – small steady return
·       CDs Certificate of Deposit – safe, but instant access has a penalty
·       Bonds – lend money to a corporation or government; higher return than above
·       Mutual Funds
o     Income funds (high-yield stocks and bonds)
o     Growth funds (larger company stocks)
o     Aggressive growth funds (smaller company stocks)
·       Stock Market
Real Estate – risks and benefits of being a landlord

17. Types of Mutual Funds Money market – short term
Bond funds – long term bonds (corp & gov)
Income funds – high yield stocks and bonds
Growth Funds – large companies; long term
Aggressive growth- smaller companies