Question to think about! Section 9.1 & 9.2 *Investing *Risk *Return *Diversification Why should you consider your financial situation, risk tolerance, and values when choosing investments? Key Terms

Question to think about! Section 9.2 Key Terms Why should you consider your financial situation, risk tolerance, and values when choosing investments? *Corporate Stock *Stockholder *Stockbroker *Brokerage Firm *Stock Exchange

Types of Stock Preferred Stock Common Stock Nonvoting share Do not have right to vote on how the company is run Fixed Dividend Less Risky Common Stock Voting share Dividend determined from year to year. Generally has a better rate of return.

General Rule of Investing Section 8.1 & 8.2 General Rule of Investing The higher the potential rate of RETURN, the greater the risk. High Rate of Return High Risk

Question to think about! Section 9.3 & 9.4 *Mutual Fund *Portfolio *Load *SEC *Insider Trading Why might you search for investment information on the internet instead of relying on printed sources? Key Terms

You will see this question again in MAY

Question to think about! Section 9.5 *401(k) Plan *IRA *403(b) Plan How might you earn a return from nonfinancial investments? Key Terms Dave Ramsey 3.1