We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byEdmund Edwards
Modified over 5 years ago
1 Investing Making money with money Investing = Saving It involves risk—you can lose your $$
2 Remember our 3 tools to save? Savings Account Money Market Account Certificate of Deposit (CD)
3 What are some ways to invest? Stocks Bonds Mutual Funds Currency Real Estate
4 Unique Investments… Collectables
5 Rule of 72’s The time or the interest rate you need to double your money 72/t=int 72/int=t
6 Simple Interest Vs. Compound Interest Simple – Interest paid only on principle amount Compound- Interest paid on principle and also on previously earned interest *See Interest Worksheet
7 Retirement Plans Pension Plans A retirement plan set up by your employer IRA’s Must wait until 59 ½ to access money Special tax benefits Used if employer does not offer a pension plan
8 Retirement Plans 401K 403B SEP Plans Plan if you worked for a small business
9 Mutual Funds A collection of investments Diversification Minimize risk Professional manager Many investors
10 Liquidity $Ability to convert your assets to cash quickly Cash Stocks Houses/Cars/Jewelry
11 Dollar Cost Averaging Letting your money work for you over time Diversification Spreading your money out over different investments Ie: stocks, bonds, mutual funds, etc. Investing Choices
12 Now What? How does diversification help limit risk? How does age and financial situation affect how you make investment decisions?
13 The Stock Market
14 Stock Represents ownership in a corporation
15 Market Value $The amount of money you can sell your investment at in the market place.
16 Stock Exchanges Indexes Stock Exchanges Indexes NYSE AMEX Nasdaq London, Japan, etc S&P 500 Dow Nasdaq Composite NIKKEI in Japan
17 Dow Jones
18 Dividends $Share of the profits from a corporation $Receive dividends for each share
19 How are earnings made on stocks? $Dividends. $Dividend are usually paid quarterly $Buy Low & Sell High
20 Advantages of Stock Investments $If the market value goes up, the gain can be considerable $Liquid $Money is easily accessible
21 Disadvantages $If the market value goes down, the loss can be considerable $Time
22 Stocks $A block of stock is one hundred (100) shares. $Preferred $Common $Blue Chip $Growth
Stock Line Yahoo Finance - Apple Inc.
24 Who protects the interest of investors by regulating companies that sell stock?
25 Bonds Carry less risk than a stock is an IOU, certifying that you loaned money to a government or corporation and outlining the terms of repayment
26 How Bonds Work Buyer purchases bond Fixed interest rate Fixed period of time When matured it is redeemed for full face value
27 Bond Types Federal Government Municipal Corporate
28 Federal Bonds The federal government issues bonds to pay for services; military, roads, infrastructure. Virtually NO RISK!! Savings bonds, Series EE & HH
29 Municipal Bonds State or local governments issue bonds for the construction of buildings, roads, schools, etc. Moderate, if any, risk
30 Corporate Bonds Issued by a Business to raise money for a capital venture. Higher risk Better rates of interest
31 Risk? US savings bond least risk Corporate bond Preferred stock Common stock most risk
Chapter 9: Sources of Capital
Saving and Investing. Always pay yourself first! All little can go a long way Don’t save your money under your mattress! (and other savings mistakes.
Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.
Investments & The Stock Market
Saving and Investing April How to Select a Savings Plan 1. Decide whether to save or invest. 2. Can you withdraw money from this savings plan? 3.
ECONOMICS STUDY GUIDE. Investing – saving in a way that earns income Diversification – distributing funds among a variety of investments to minimize overall.
Key Terms from the World of Finance. Key Terms AMEX – Stands for American Stock Exchange. Located in New York City, this stock exchange sells memberships,
Investing: Taking Risks With Your Savings. Stocks are also known as securities As proof of ownership, you get a stock certificate Stocks What are they?
Investing: Risking money to make money Chapter 2: Saving and Investing.
Introduction to Stock Market. Common Vocabulary Common Vocabulary Stock Exchange – Place where publicly held companies are bought and sold Nasdaq – an.
Stock Market Game Current Events.
Savings and Investing How to make your money grow….
P E R S O N A L F I N A N C I A L M A N A G E M E N T P R O G R A M Saving and Investing 1.
Investing Bonds and Stocks. Setting Investment Goals Investing presents opportunities for people and businesses to increase their income. Investing.
+ Investments. + Learning Objectives Students will know investment options. Students will be able to identify relative risk, return and liquidity of the.
Chapter 11 Financial Markets and Investing Investing Investing – the act of redirecting resources from consumption today so that they may create additional.
Investments Who wants to be a millionaire?. What kind of an investor are you? Rate all investment options according to three characteristics: Safety.
The big QuestionThe big Question A stranger on the street approaches you with a strange proposition: You can have a million dollars right then and there.
Prepare for your Future Chapter 13. Investing Making money with money Investing = Saving It involves risk—you can lose your $$
Financial Markets. Section 1 Investment- the act of redirecting resources from being used today so they can be used to create future benefits When.
© 2021 SlidePlayer.com Inc. All rights reserved.