1. Investing activity
Wharton H.S. – Brian Page

2. Decide, what is your favorite product or service?
Consider the company who provides your favorite products or services. Of the choices below, select your favorite company stock.
Apple:
Wal-Mart:
Netflix
Procter and Gamble
Google
Nike
Tesla
On a plain piece of paper, write in BIG LETTERS the company name

3. Tip: How YOU can make money
You can own your favorite company by purchasing a stock!
This makes you a shareholder.
Stock: A share of ownership in a corporation.
There are three main ways you can earn money:
Capital gain
Dividends
Short cover

4. Tip: What’s a bond?
Bond: A debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Higher interest = higher risk

5. Select a Bond Select from any of the five bonds below:
Apple: 2.4% yield at $100
Wal-Mart: 2.55% yield at $100
10 year government bond [United States]: 1.83% yield at $100
Bank of America: 2.65% yield at $100
10 year government bond [Greece]: 9.25% yield at $100
On the back of the paper with your stock selection, write the bond [and yield] you selected in BIG LETTERS.

6. Tip: About a Mutual Fund
A collection of stocks, bonds, or cash managed by a professional toward a stated goal.
Aggressive funds are typically made up primarily of stocks.
Conservative funds are typically made up primarily of bonds.
Blended funds are typically made up of a combination of both.

7. Get up and moving!
Based on the company or bond you selected, you will be placed into three separate groups. When selected by the teacher, get up, move and stand in your groups!

8. Classroom Discussion
Can you identify the type of mutual fund your group represents?
Conservative
Blended
Aggressive

9. Classroom Discussion: What happens if…
… a company in the portfolio goes bankrupt?
… a bond in the portfolio defaults?

10. Your Turn!
Pretend you are each mutual fund managers. Work together to form your own mutual funds using the same bond / stock paper.
Step 1: Group yourselves into teams of four or five to form aggressive mutual funds.
Step 2: Group yourselves into teams of four or five to form conservative mutual funds.
Step 3: Group yourselves into teams of four or five to form balanced mutual funds.