INTRODUCTION TO INVESTING

What is stock?  Ownership of a company  Raise $ to fund expansion  Value based on speculation  Supply and Demand  Assessed value  Technology has opened the market to everyone

Other Investments  Savings Accounts  Certificates of Deposit  Mutual Funds  Bonds

Risks  Be aware of risk in investing in the market; nothing is guaranteed  Things to consider:  What if company doesn’t do as well as expected?  What if the company goes out of business?  What if the economy changes for the worse?  Best way to minimize risk? Diversify

Benefits  Higher rate of return  Savings pay 2-3% a year, stocks have averaged 10% return a year  Help earn enough money for retirement  Internet has made stock investing very low cost  Own companies that make products you like