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)