1. Securities The word “security” stands for any type of investment

2. Bonds A bond is a loan. Sometimes companies want to raise money, but not lose ownership.

3. Bonds Bonds allow companies to borrow money and pay it back at a fixed rate.

4. Bonds

5. Maturity Date The date the bond “matures” or is totally paid back.

6. Bond Interest Bonds pay interest either: 2 times/year 1 time/year

7. How Bonds Work Coupon: interest Face value or par value: principal amount of the loan

8. How Bonds Work

9. Bond Yield Yield: amount of interest/principal

10. Bond Risk Bonds are usually low risk because the interest is determined before you buy.

11. Bond Risk

12. Who Issues Bonds? Corporations Government Federal Local Municipal http://www.investopedia.com/terms/m/municipalbond.asp

13. Federal Government Our Federal Government is operating at a deficit; it pays its bills by issuing bonds

14. Federal Government

15. Series EE Bonds Bonds sold by the U.S. Treasury (up to 30 years) Risk: Very low Guaranteed to at least double Usually exempt from state and local taxes

16. Series EE Bonds

17. War Bonds

18. Bond Ratings Rating: AAA to D Indicates creditworthiness (like a credit score)

19. Bond Ratings

20. Real Estate Real Estate Investing: ownership of land and buildings Risk: High

21. Real Estate

22. Speculative Investments Investment that carries a very high level of risk.

23. Speculative Investments

27. Commodity: a raw material or agricultural product that can be bought and sold, such as copper or coffee

28. Options Contract that offers the buyer the right to buy a security at a certain price during a certain period of time. Risk: High

29. Futures A contract where you buy or sell at a predetermined price in the future. Risk: High

30. Futures http://www.investopedia.com/terms/f/futurescontract.asp