1. Investing in America Aim: How do Americans invest their money? ERHSMr. Graboski

2. Investing in America Investing: Using money that you have saved to earn more money (financial gain). Securities: Investments that give their holders the right to receive some form of return, or profit. The two most common kinds of securities are stocks and bonds.

3. Investing in America Bond: Is a loan in which the borrower promises to pay the lender a fixed rate of interest over the term of the loan and then repay the principal at the end of the term, or date of maturity.

4. Investing in America The two types of government bonds are Treasury Bonds and Municipal Bonds.

5. Investing in America

6. When the federal government needs to borrow money, it issues bonds. Treasury bond terms range from 10 to 30 years.

7. Investing in America Corporate Bonds are issued by corporations, and are riskier to invest in than government bonds. Why? There are two types of corporate bonds, investment grade bonds and junk bonds. Junk bonds offer higher potential returns in exchange for a moderately higher risk that the company might fail.

8. Investing in America Stocks: Are securities that represent an ownership share in a business. When a company issues shares of stock, it is actually selling ownership rights. Investors who buy the company’s stock become its shareholders. These shareholders own the company.

9. Taxes Capital Gains taxes are charge on income received from the sale of stocks, bonds, and property.