September 17th 2012

Common CentsInvestment Group

Common Cents Investment GroupSeptember, 2012

Agenda

Membership Investopedia Stock Ownership Dollar Cost Averaging Funds Choosing the right broker

Common Cents Investment GroupSeptember, 2012

Membership

Cost is only $20 for the whole year! Benefits:

Member of a very beneficial and informative club that will inevitably be valuable in your future

A network of friends who share a similar interest in investing and personal finance

A virtual portfolio challenge that will strengthen your confidence in investing

$20

Common Cents Investment GroupSeptember, 2012

Membership

Benefits: Possibly T-Shirts? Resume booster! Leadership opportunities And of course…Free pizza & Pop!

Common Cents Investment GroupSeptember, 2012

Membership

Full Membership requires: Member has attended at least 2 CCIG

meetings Member has paid $20 club fee

Common Cents Investment GroupSeptember, 2012

Investopedia

A year long virtual investment challenge on www.investopedia.com

The winner at the end of year wins a cash prize!

Each participant will have: $100,000 of virtual cash Until the end of spring semester to trade The ability to view their own trade history as well as the

trade history of other players Great resources at their access to do research on

investments

Common Cents Investment GroupSeptember, 2012

Investopedia

How to join: Create an Investopedia account (easy) Click on Simulator on the home page

Common Cents Investment GroupSeptember, 2012

Investopedia

How to join: Click “Add/Edit Games”

Common Cents Investment GroupSeptember, 2012

Investopedia

How to join: Click “Join Game”

Common Cents Investment GroupSeptember, 2012

Investopedia

How to join: Search “CCIG OSU 2012” and select “Join”

Common Cents Investment GroupSeptember, 2012

Investopedia

How to join: Game Password: ******** Password will be given to official members

Common Cents Investment GroupSeptember, 2012

Investopedia Presentation…

Here

Common Cents Investment GroupSeptember, 2012

Now onto stock ownership and funds…

Common Cents Investment GroupSeptember, 2012

Stock Ownership

What does it mean to own a stock? Share of stock: A security representing fractional

ownership in a firm and a claim on its net assets and earnings.

Value of stock changes with market Voting rights Do many things with stocks:

Buy (hold long positions) Sell Short selling (short position) Cover short More on this later…

Common Cents Investment GroupSeptember, 2012

Stock Ownership

Yahoo! Finance summary of P&G stock

Common Cents Investment GroupSeptember, 2012

Dollar Cost Averaging

An investment strategy where you put equal amounts of money into an investment periodically

Purchase more shares when prices are low, and less shares when prices are high – overall increase in portfolio value

Common Cents Investment GroupSeptember, 2012

Funds

What is a fund? A collection of stocks, other equity and

debt instruments Can track a particular index (such as the

Dow Jones or S&P 500) Diversification

“It’s the only free lunch”

Common Cents Investment GroupSeptember, 2012

Funds

Indexes Guaranteed market rate of return Diversified Low expenses Usually tax efficient Easy to build a portfolio based on your risk

tolerance Management Fee

2% or more per year Lower for ETF’s

Common Cents Investment GroupSeptember, 2012

Funds

Index Mutual Funds Higher minimums Better for small, frequent purchases Only priced and traded at the close of the

day Examples:

Vanguard Fidelity Blackrock Janus

Common Cents Investment GroupSeptember, 2012

Brokers

Different brokers are good for different things

Next week we will discuss the differences and our personal preferences

A few websites to research different brokers http://www.stockbrokers.com/2012-online-

broker-review.html http://www.stocktradingtogo.com/compare-

online-brokers/

Common Cents Investment GroupSeptember, 2012

Questions?

Questions, comments or concerns?

?