1. Evaluating Stocks

2. What are stocks? – http://www.investopedia.com/video/play/what- are-stocks#axzz1nnLDblG4 http://www.investopedia.com/video/play/what- are-stocks#axzz1nnLDblG4 How do they move? – http://www.investopedia.com/video/play/what- moves-stock-prices#axzz1oLS1Hrtk http://www.investopedia.com/video/play/what- moves-stock-prices#axzz1oLS1Hrtk

3. Two Classes of Stock (1) Blue chip stocks – Well-established corporations – History of steady sales and profits – Generally pay dividends every year – Stock values generally don’t change rapidly – Lower risk – AT&T, Ford, General Motors

4. Two Classes of Stock (2) Growth stocks – Smaller or younger corporations that produce new products may grow rapidly in their sales and profits – Often pay no, or very small, dividends – Investors hope to earn a large capital gain in the future – Riskier! – Intel and Microsoft

5. Two Classes of Stock (2) Growth stocks (continued) – Investors hope to earn a large capital gain in the future – Riskier! – Intel and Microsoft

6. Chart Comparison Blue Chip Stock - NKE Growth Stock

7. What are mutual funds? http://www.investopedia.com/video/play/intr oduction-mutual-funds#axzz1nnLDblG4 http://www.investopedia.com/video/play/intr oduction-mutual-funds#axzz1nnLDblG4

8. Mutual Funds Investors pool money to buy stocks, bonds and other securities. – Characteristics Managed by investment advisors Can sell at any time Purchase through funds itself or through stock exchange or NASDAQ – Examples: Money Market Funds Bond Funds

9. Bonds http://www.investopedia.com/video/play/bon d-investing#axzz1oLS1Hrtk http://www.investopedia.com/video/play/bon d-investing#axzz1oLS1Hrtk

10. Junk Bonds Businesses in financial difficulty will sell bonds to raise money – Offer high interest rates to entice buyers High-return, high-risk bonds – Also called high-yield bonds