Welcome Greater Miami Academy! Florida International University State Farm Financial Literacy Lab Presented by: Dr. Helen Simon, CFP January 2012
Welcome to the State Farm Financial Literacy Lab Staff intros What we do Why we do what we do Why you are here Questions
Our Plan of Action! See how much you know now Get ready for the Stock Market Game Learn about stocks & bonds Learn about markets and institutions Learn about credit and personal finances See how much you have learned by the end of our session!
Graduation! A certificate An official State Farm Financial Literacy Lab shirt A graduation luncheon banquet
What are stocks? Represent a fraction of ownership in a corporation Referred as: ▫Shares ▫Equity ▫Stock
Characteristics Represent a claim to part of the corporations assets and earnings Ownership gives shareholders the right to vote on management placement and policies Price determined by supply and demand Potential to earn a lot if a company is successful, but also stand to lose entire investment if the company isn't successful.
Trading Stocks Most stocks are traded on exchanges ▫Places where buyers and sellers meet and decide on a price. Physical Virtual
How do I decide what stocks to buy? Peter Lynch Buy what you know If you like a product, chances are others will also! * Next time we meet, come back with ideas!