CH. 11: INVESTING.

Slides:

Advertisements

Similar presentations

Chapter 19 Securities Markets Business Today. 2Prentice Hall Investment Choices Stocks – Preferred Stock – Common Stock Common-Stock Dividends Stock Splits.

Advertisements

Investments & The Stock Market

1. Income stocks pay. Income stocks pay dividends at regular times during the year.

Investing: Taking Risks With Your Savings.  Part Owner of Corporation  Funds for expansion  Stock Returns ◦ Stockholders ◦ Dividend, return on investment.

FrontPage: Turn in Savings Calculator worksheet from yesterday if you didn’t finish. The Last Word: Ch 11 Review/Unit 4 Test Tuesday.

Unit 4. Money Three Uses: Medium of Exchange Barter Economy vs. Monetary Economy Unit of Account Store of Value Six Characteristics of Currency Durability.

Personal Finance. Define stocks and analyze the benefits of investing. Evaluate stocks in order to get a return on an investment. Compare and contrast.

Saving and Investing Objective:

Buying Stock: Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.

The Stock Market In this lesson, students will be able to identify characteristics of the stock market. Students will be able to identify and/or define.

STOCK MARKET. Two Things to do with Money Income not used for consumption Income today that allows future benefit INVESTMENTSAVE.

Financial Markets Chapter 11. BELLRINGER  What would you do if you suddenly received a cash payment of $100,000 that you were not expecting and didn’t.

Financial Markets and Risk

Chapter 11 Financial Markets and Investing Investing Investing – the act of redirecting resources from consumption today so that they may create additional.

CH 11 Financial Markets 11.1 Saving and Investing.

Financial Markets: Saving and Investing

Financial Markets. Section 1  Investment- the act of redirecting resources from being used today so they can be used to create future benefits  When.

1 Investing  Making money with money  Investing = Saving  It involves risk—you can lose your $$

Ch. 11: Financial Markets. What to do with money: Make a list of as many places you can think of that you could invest money...

Chapter 11 Financial Markets.

Financial Markets Investing: Chapter 11.

Chapter 11 Financial Markets. Investment Investment is the act of redirecting resources from being consumed today so that they may create benefits in.

Investing  . If you invest $1,000 each year What are some ways to invest?      

The Stock Market Chapter 11 Section 3. Buying Stock Besides bonds, corporations sell stock to raise money Stocks are issued as shares Stocks are also.

E. Napp The Stock Market In this lesson, students will be able to identify characteristics of the stock market. Students will be able to identify and/or.

 Savings – income not used for consumption  Investment – the use of income today that allows for a future benefit  Financial System – all the institutions.

Financial Markets Chapter 11. Investment Act of redirecting resources from being consumed today so that they may create benefits.

Chapter 6 Why Save?.  Saving benefits the economy as a whole. You save bank lends person can now invest or spend. You earn interest bank earns interest.

Stock Markets Being an educated investor will enable you to become financially sound.

Money Investments  What is an investment?  Investment is something bought for future financial benefit.  Promotes economic growth  Contributes to wealth.

WARMUP 5/11: WRITE ON THE BACK OF THE LAST PAGE ON THE NOTES SHEET List at least 2 things that you know about the stock market. Then write 3 questions.

INVESTMENTS – RISK TOLERANCE QUIZ Stocks Bonds Real Estate Collectibles Mutual Funds.

The Free Market System Financial Markets. Saving and Investment 1.investment: the purchase of an asset in hopes it appreciates or generates income ●Examples:

ECONOMICS CHAPTER 11: FINANCIAL MARKETS SECTION 2: BONDS AND OTHER FINANCIAL ASSETS.

Chapter 11 Section 3 Investing in Equities and Options.

STOCK MARKET. INVESTMENT  Definition- act of redirecting resources from being consumed today so they may create benefits in the future.

FINANCIAL MARKETS Chapter 11. SAVING & INVESTING Section 1.

Risk and Reward Investment options.

FINANCIAL MARKETS CHAPTER 12.1.

Financial Markets Financial Assets-claim on the property or income of the borrower Financial Intermediary-institution that helps channel funds from savers.

Economics: Principles in Action

The Free Market System Financial Markets.

Personal Savings and Investment #46

Investing in Equities and Options

Chapter 11 Financial Markets.

Introduction to the Stock Market

Investing: Taking Risks With Your Savings

Saving and Investing EQ: Explain the differences between saving and investing and the benefits and risks of each. E. Napp.

(Correlated to LCVS Educator Site Content)

Investing: putting savings to use

Investment Options Part 1.

Warm Up What does it mean when a person has stock in a company?

Chapter 11 – Financial Markets

Investments: Chapter 11 Section 3

Savings and investing Personal Finance.

Ch. 6.2: Investing - Taking Risks With Your Savings

CH. 11: INVESTING.

CH. 11: INVESTING.

Chapter 11 Financial Markets.

What is a Stock Market?.

The Stock Market VOCABULARY

Financial Markets and Risk

Stocks: The Basics.

Making more money than you know what to do with!!!

The magical place where stocks are bought and sold.

Investing and Saving Standard 1: Discuss how saving contributes to financial well-being. Standard 3: Evaluate investment alternatives. Standard 4: Describe.

Chapter 11 Financial Markets.

Saving and Investing.

Presentation transcript:

CH. 11: INVESTING

3 THINGS YOU CAN DO WITH MONEY: INVEST IT! SAVE IT! SPEND IT!

REDIRECTING YOUR RESOURCES FOR PROFIT AND FUTURE BENEFIT INVESTING: REDIRECTING YOUR RESOURCES FOR PROFIT AND FUTURE BENEFIT

INVESTING CONTRIBUTES TO THE FREE ENTERPRISE SYSTEM Profit Motive: PRIVATE CITIZENS INVEST IN ORDER TO MAKE A PROFIT

HOW DOES INVESTING WORK?

WHAT DOES INVESTMENT REQUIRE? Financial System Assets Financial Intermediary Knowledge of Risks

FINANCIAL SYSTEM MUST BE: STABLE REGULATED FREELY ACCESSIBLE BY INVESTORS AND INVESTEES

ASSETS MONEY (OR THINGS OF WORTH) TO INVEST

FINANCIAL INTERMEDIARIES HELP YOU INVEST PROVIDE: PROSPECTUS PORTFOLIOS DIVERSIFICATION LIQUIDITY

BONDS: LOANS OR IOUs THAT REPRESENT WHAT A CORPORATION OR GOVERNMENT OWES YOU AT MATURITY

THREE BASIC COMPONENTS OF BONDS: COUPON RATE: interest rate paid to you MATURITY: the date that you can cash it in PAR VALUE: the principal (starting) value

See p. 279 for bond rating systems

STOCKS EQUITIES OR SHARES: a corporation allows you to own a “piece” of their company in exchange for either “dividends” or “capital gains”

HOW DO YOU MAKE MONEY IN THE STOCK MARKET? Step # 1: Research the corporation Step # 2: Find a financial intermediary Step # 3: Buy the stock (number of shares) Step # 4: Monitor the progress Step # 5: Sell it to earn “capital gains” or to cut “capital losses” Step # 6: Collect “dividends”

WHERE CAN YOU RESEARCH? FINANCIAL NEWS CORPORATE WEBSITES FINANCIAL INTERMEDIARIES

ALL STOCKS ARE NOT THE SAME

WHERE DOES THIS HAPPEN? NYSE - an actual place in NYC - largest stock exchange - blue chip stocks NASDAQ - mostly electronic - OTC stocks Brokers and Traders

DOW JONES INDUSTRIAL AVERAGE SHOWS THE HEALTH OF THE TOP 30 CORPORATIONS IN THE STOCK MARKET

S & P 500: TOP 500 CORPORATIONS

BULL VS. BEAR MARKET Bull Market: prices are rising Bear Market: prices are falling Which is scarier?

OPTIONS & FUTURES Investing based on prices in the future and reserving the option to buy or sell in the future.

What’s it like to work at the NYSE? http://www.youtube.com/watch?v=a55G2kt93IU