Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction Many individuals already invest in stocks, bonds and mutual funds and may not even realize it. Stocks, bonds and mutual funds are popular investments for those who want a higher rate of return The risk of losing some or all of your money with these investments is higher. Without higher risk investments, you may never reach your long-term financial goals

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved2 Objectives Explain what SEC stands for and what they do for investors You should be able to do the following after completing this lesson. Describe what stock is and how it is bought and sold Identify which investment has historically produced the greatest return Discuss how investing in stocks can increase your personal wealth What are the basic types of stock and what is a stock index Explain how a 401(k) and a mutual fund are related Define SEC, insider trading, stocks, stock index, bonds, mutual fund, 401(k) and other key terms introduced in this lesson Review what a bond is and who can sell them

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Security and Exchange Commission What the SEC is Who the SEC deals with What and whom the SEC oversees and regulates In this section, you will learn How the SEC protects investors What the primary objective of the SEC is

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Transaction Fees What transaction fees are and when they are paid Which types of investments charge a transaction fee In this section, you will learn How much transactions fees typically cost The affect transaction fees has on your investments How transaction fees affect the growth of investments Transaction Cost Comparison Exercise You will run the following Interactive Exercise

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Stock Investing What stock investing is and how many people do it What a stockholder is and what they own Why investing in stocks is popular What a stock exchanges does In this section, you will learn Why some people don’t know they are investing in stocks What a stockbroker is and what they can do for you Average Annual Return Example You will run the following Interactive Example

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – The Attraction of Stocks Why stocks are attractive to investors The typical return produced by stocks What the liquidity of stock is How much stocks cost In this section, you will learn Why people close to retirement don’t invest in stocks How many different stocks exists

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Types of Stock What a preferred stockholder is How many types of stock are sold Why some stocks pay dividends In this section, you will learn What happens to the stock if the company fails What a common stockholder is

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Stock Indexes How often stocks are bought and sold What a stock market is What a stock index is In this section, you will learn What some of the major stock indexes are What a bull market is What a bear market is What makes up a stock market

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Bond Investing What a bond is and who issues them The level of risk associated with bonds In this section, you will learn Why bonds can be short or long-term investments What the basic types of bonds are How to purchase a bond and when they pay interest If bonds are considered good investments Bond Type Comparison Exercise You will run the following Interactive Exercise

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Mutual Funds Why mutual funds are popular with investors What a mutual fund is and when they were created The number and types of mutual funds available today In this section, you will learn What a mutual fund invests in Who manages a mutual fund What the typical return is for mutual funds What dollar-cost averaging is Dollar-Cost Averaging Example You will run the following Interactive Example

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved – Index Funds and ETFs What fees are associated with index funds What an Index fund is How to invest in an index fund In this section, you will learn What an ETF is What an ETF consists of What fees are associated with an ETF What determines the price of an ETF

Lesson 9.4 Stocks, Bonds and Mutual Funds July 2011Copyright © … REMTECH, inc … All Rights Reserved12 Discussion Questions How many people actually invest in stock today? Why is investing in bonds considered less risky than investing in stocks?