1. INVESTING

2. Business Management: Learning Targets
Understanding the importance
Investing
Building Wealth
will have in both my professional (business) and personal life.

3. WHY INVEST? Potential source of income Prepare for major purchase
Security Blanket
T.V.M.

4. Potential Source of Income
Earn interest off investment
Dividends - reinvest or cash out
Sell investment for profit
Use earnings as primary or secondary income

5. Prepare for Major Purchase
Buy home
Buy property
Buy car
Pay for college
Pay for a wedding
Start a family

6. Security Blanket Supplement Social Security
Back-up to company paid benefits
Always have more money than you need
Fact –
if the economy stays on its current path there will not be any Social Security benefits available for your generation.

7. T.V.M TIME VALUE of MONEY Start early
Doesn’t have to be a large amount
Invest/Deposit often
Allows your money to grow by utilizing compounding interest to increase your investment.

8. Types of Investments Real Estate Stock Market
Stocks – Mutual Funds – Bonds
Banking
Certificate of Deposits (CD’s)
Money Market Accounts
Savings Accounts
Government Securities
Treasury Bills & Notes
Bonds

9. Property Land or Acreage Public or commercial. Rentals Houses
Always a need for land.
Rentals
Houses
2-Families
Condos /Apartments

10. Stock Market Investments
Stocks
Mutual Funds
Bonds
Commodities

11. Investment Risk High Risk Medium Risk Low Risk
Remember no investment is guaranteed to make you money.
Greater the risk, greater reward!

12. High Risk - Investments
FUTURES
Real Estate
Certain types of Stocks
Certain types of Mutual Funds
Certain types of Bonds

13. Medium Risk - Investments
Real Estate
Certain types of Stocks
Certain types of Mutual Funds
Certain types of Bonds

14. Low Risk - Investments Govt. Securities Treasury Bills & Notes Bonds
Mutual Funds
Savings Account
Money Markets
CD’s
FYI – Takes longer to make money but almost a sure thing!

15. Key to successful Investing
Diversification
Invest in more than one type of investment that way you can balance your portfolio…
“don’t have all your eggs in one basket”
Scenario:
You own stock in FTB, GE, PG. FTB goes down, GE stays the same, and PG goes up. By being diversified, when FTB went down, you did not lower your overall wealth.

16. INVESTMENT GLOSSARY pt. 1
Annual Report
Asset
Bear Market
Blue Chip Stock
Bond
Broker (Stock Broker)
Bull Market
Capital Appreciation
Capital Gain/Loss
Capital Gain Tax
Certificate of Deposit
Common Stock
Coupon
CUSIP Number

17. FRAYER MODEL DIAGRAM

18. Continued… OVAL – write the concept word or term.
1st Box – write the definition of the word…needs to be clear and easily understood by all.
2nd Box – list the characteristics of the word.
3rd Box – list examples of the word.
4th Box – list non-examples of the word.

19. Example: Mammals Body covered by hair Mammary Glands Lungs 4 Limbs
A mammal is known as a warm blooded creature that grows hair or fur on its body. Also, females should be able to secrete milk to feed to her young, after birth.
Body covered by hair
Mammary Glands
Lungs
4 Limbs
Give birth to young
Mammals
Man Monkey
Cat Horse
Mouse Elephant
Girl Cow
Snake Mosquito
Duck Lizard
Frog Bird
Crab Fish

20. websites http://www.investorwords.com/

21. COMING SOON What is Stock? Types of Stocks? What are Mutual Funds?
How do you Invest?
The S.M.G. (Stock Market Game)