1. Financial Algebra
19 April 2018

2. announcements Your take-home quiz is due by Friday
You may turn it in earlier, but it will not be graded until this weekend due to testing and meetings I have
I will be proctoring again next week (Monday and Tuesday)
I’m not certain where you will be going, but I’ll let you know as soon as I know

3. Key terms and vocabulary
Bond
Brokerage
Commission
Corporate bond
Coupon payment
Coupon rate
Discount brokerage
Diversification
Dividend
Face value
Federal agency bond
Full-service brokerage
Initial public offering (IPO)
Institutional investor
Investment
Junk bond
Maturity date*
Municipal bond
Mutual fund
National Association of Security Dealers Automated Quotations (NASDAQ)
New York Stock Exchange (NYSE)
Primary market
Publicly traded
Secondary market
Securities and Exchange Commission (SEC)
Security
Shareholder
Stock
Treasury bonds

4. investing
Investment: Something that is acquired with the goal of making money.
This can be a person (an employee with knowledge of new technology) or thing (vehicle to get to work)
But let’s be realistic, the best investments are money-based
I think we can all agree that you should save a liquid cash reserve for emergencies and unexpected expenses
We’ve already been over a few of the major liquid methods of investing -- checking accounts, certificates of deposit (CDs) , and savings accounts
We know that these are relatively safe, but the amount of interest they earn is pretty low
So we have some alternatives  higher risk alternatives (no guarantee you’ll get a return on investment)

5. investing These high risk investments come in several types:
Stocks
Bonds
Mutual funds
Pro: These investments can outpace inflation and yield incredible gains
Con: The gains are not guaranteed, even if you do everything correctly; too much depends on other people; you are not promised you will receive even your initial investment back

6. stocks
Stocks: Certificates that represent pieces of a person’s ownership in a company
If a company has issued 100 shares of stock that represents the entire ownership of the firm, then each share of stock would be equivalent to 1 percent of the firm’s value
Company size and popularity can determine not just the number of shares, but the cost of each share:
Apple, have issued millions of shares
Stock ownership also carries voting rights