September 17 th 2012

Common Cents Investment Group September, 2012 Agenda  Membership  Investopedia  Stock Ownership  Dollar Cost Averaging  Funds  Choosing the right broker

Common Cents Investment Group September, 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

Common Cents Investment Group September, 2012 Membership  Benefits:  Possibly T-Shirts?  Resume booster!  Leadership opportunities  And of course…Free pizza & Pop!

Common Cents Investment Group September, 2012 Membership  Full Membership requires:  Member has attended at least 2 CCIG meetings  Member has paid $20 club fee

Common Cents Investment Group September, 2012 Investopedia  A year long virtual investment challenge on  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 Group September, 2012 Investopedia  How to join:  Create an Investopedia account (easy)  Click on Simulator on the home page

Common Cents Investment Group September, 2012 Investopedia  How to join:  Click “Add/Edit Games”

Common Cents Investment Group September, 2012 Investopedia  How to join:  Click “Join Game”

Common Cents Investment Group September, 2012 Investopedia  How to join:  Search “CCIG OSU 2012” and select “Join”

Common Cents Investment Group September, 2012 Investopedia  How to join:  Game Password: ********  Password will be given to official members

Common Cents Investment Group September, 2012 Investopedia Presentation… Here

Common Cents Investment Group September, 2012 Now onto stock ownership and funds…

Common Cents Investment Group September, 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 Group September, 2012 Stock Ownership  Yahoo! Finance summary of P&G stock

Common Cents Investment Group September, 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 Group September, 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 Group September, 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 Group September, 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 Group September, 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  broker-review.html  online-brokers/

Common Cents Investment Group September, 2012 Questions?  Questions, comments or concerns?