1. The Stock Market

2. What are stocks? A stock is a percentage of ownership in the company

3. I’m so Paid Shareholders get dividends Dividends are periodic payments paid to shareholders The amount of dividends paid can vary on the profitability of the company, the more profitable the larger the dividend.

4. Common Stock Owners of Common Stock are entitled to elect a board of directors May not receive dividends if the company uses them to expand. In this case the stock price should increase to compensate

5. Preferred Stock Similar to common stock, except do not have the ability to elect the board of directors Unlike common stock, preferred stock have a fixed dividend. Preferred stock must get paid before common stock

6. Bond A bond is a loan to a corporation or government body. If you invest $10,000 into a bond then you are giving someone a $10,000 loan that they must pay back with interest. Maturity date is the earliest date when the bond will be redeemed

7. Corporate Bond Private companies that want more money for expansion All bond interest must be paid before any dividends can be paid to stockholders

8. Municipal Bonds States, Cities, countries, school districts and other government bodies raise money to pay for schools, hospitals, streets, and so forth. Usually exempt from local and federal taxes

9. U.S. Savings Bond Bonds backed by the full power of the Federal Government Very Safe, Low interest rate

10. Mutual Funds When a group of people invest money into a group of stocks controlled by a group of investors Good Return Usually Fairly Safe Smart Decision

11. Money Market Account Combines a savings and checking account Interest on account is higher then savings account Usually has restrictions on account like number of transactions and limits on withdrawals