INVESTING
Business Management:Learning Targets
Understanding the importance Investing Building Wealth
will have in both my professional (business) and personal life.
WHY INVEST? Potential source of
income
Prepare for major purchase
Security Blanket
T.V.M.
Potential Source of Income Earn interest off
investment
Dividends - reinvest or cash out
Sell investment for profit
Use earnings as primary or secondary income
Prepare for Major Purchase Buy home Buy property
Buy car Pay for college
Pay for a wedding Start a family
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.
T.V.MTIME VALUE of MONEY Start early Doesn’t have to be
large amount Invest/Deposit often
Allows your money to grow by utilizing interest to increase your investment.
Tip - Invest often…any amount!
Types of Investments Real Estate Stock Market
Stocks – Mutual Funds – Bonds
BankingCertificate of Deposits (CD’s)Money Market AccountsSavings Accounts
Government SecuritiesTreasury Bills & NotesBonds
Property Land or Acreage
Public or commercial.
Always a need for land.
Rentals
Houses
2-Families
Condos /Apartments
Stock Market Investments Stocks
Mutual Funds
Bonds
Commodities
Investment Risk
High Risk
Medium Risk
Low Risk
Remember no investment is guaranteed to make you money.
Greater the risk, greater reward!
High Risk - Investments FUTURES
Real Estate
Certain types of Stocks
Certain types of Mutual Funds
Certain types of Bonds
Medium Risk - Investments Real Estate
Certain types of Stocks
Certain types of Mutual Funds
Certain types of Bonds
Low Risk - Investments Govt. Securities
Treasury Bills & Notes
BondsMutual Funds
Savings Account
Money Markets
CD’s
FYI – Takes longer to make money but almost a sure thing!
Key to successful InvestingDiversification
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.
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
FRAYER MODEL DIAGRAM
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.
Example:
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.
websites
http://www.investorwords.com/
http://investment.financial-dictionary.org/
COMING SOON What is Stock? Types of Stocks? What are Mutual Funds? How do you Invest? The S.M.G. (Stock Market Game)