1. Stocks & bonds

2. WHY BUY STOCKS? 1. Gain a profit 2. limit the risk on their investment
3. Become a part owner of the corporation

3. PROFIT POTENTIAL 1. Regular Dividends 2. Sell at a higher price
Dividends are paid to a shareholder in return for an investment.
Some pay quarterly, while others pay annually or semiannually
2. Sell at a higher price
High Price – Lower Price = Capital Gain
Sell stock at a price lower than the purchase price = Capital Loss

4. LIMITED LIABILITY
The amount of money a stockholder can lose is limited to the amount he or she invested in the stock.

5. OWNERSHIP
People invest in stocks to become owners in a corporation and to vote on company matters.
The number of votes a shareholder has is equal to the number of shares of stock he or she owns.
Elect the board of directors OR decide on a variety of other business issues.