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Economics. What is investing? Simply put, investing is saving money in a way that earns income. The purpose of investments in to earn additional income,

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Presentation on theme: "Economics. What is investing? Simply put, investing is saving money in a way that earns income. The purpose of investments in to earn additional income,"— Presentation transcript:

1 Economics

2 What is investing? Simply put, investing is saving money in a way that earns income. The purpose of investments in to earn additional income, however…. Some investments may decline in value/ lose money.

3 Types of Investments Savings Accounts Certificate of Deposit (CD’s) Money Market Accounts (MMA) Savings Bonds Stock Market

4 Risk vs. Return The higher the risk, the higher the return Return= the income you earn on an investment. No Risk Investments Savings accounts, bonds Mid Risk Investments Mutual Fund (low, med, high) High Risk Investments Stock Market

5 What is diversification? “Don’t put all of your eggs in one basket.” Limits risk of investments If you invest your money in multiple places, you may lose $ on one investment but not all. Some investments can be low risk while others are high risk.


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