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Published byJohnathan Barker Modified over 9 years ago
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By:Evan Botterman and Tyler McKoy
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Very simply, a stock is a share in the ownership of a company The more stocks in a company someone owns, the more ownership they have Holding stocks means that you are a shareholder Being a shareholder entitles you to a share of the companies profits These can sometimes be paid in dividends The value of the stock goes up and down depending on how the company does
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A bond is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time Bonds are used by various organizations to finance projects Sometimes companies use bonds if they need money fast—but they will have to pay back the money with interest later on
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Stocks: IBM (IBM), YHOO (Yahoo), MSFT (Microsoft) Many stocks are traded on stock exchanges such as the New York Stock Exchange Bonds: US Treasury Bond, Corporate Bond, Municipal Bond, James Bond Bonds can be purchased from the companies or banks
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Write down a simple definition for stocks and bonds and give an example of each. Everyone look up three stocks and write down the starting price and current price and record it. Which one would you invest in now?
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