1. FINANCE

2. Finance Over the next two weeks we are going to be diving into finance – Business Finance Money management, budgeting, payroll, income, banking – Personal Finance Taxes, Mortgages, Budgeting

3. Finance A financial tool in which one puts money for a period of time in exchange for a chance to earn interest or a return on that money There are various ways that people can “invest” their money

4. With a partner For 2 minutes talk with your neighbour about a few different ways that someone can invest their money. Think about ways that you may have invested over the years in order to receive a larger return

5. One example we have all seen

6. Investing Why were the Dragon’s interested in investing in these small starter businesses?

7. Other Investments Savings and Chequing Accounts (Your bank account) Stocks Bonds Mutual Funds GIC’s These are known as financial instruments

8. Financial Instruments The different financial instruments all have differing characteristics – Safety of Principal The risk of losing the money you invested – A good return Receiving money back on top of your principal – An increase of Capital If the stock or bond is worth more later than when you bought it

9. Rules of Investment If there was one rule to investing it is...

10. Fantasy Football Comparison

11. We will get to stocks....... But first

12. Bonds Banks and Companies issue bonds in order to borrow money to run their institutions In return for borrowing your money you get – Your Principal in Full – Interest on that investment – All at an agreed date – A relatively risk free way of making money

13. Bonds Ratings – AAA – highest rating given to the most secure bonds Financial Institutions and well established businesses Almost an absolute guarantee you get your money back – AA – A – BBB The lower the rating – the higher the interest rate

14. Savings Bonds Canada Savings Bond – Issued by the federal government – Unique in that it is risk free You can get your money back at any point – A minimum $100 investment

15. Stocks As we will learn by watching the movie WALL STREET – Buying stock is buying partial ownership in a company – We buy stock in the hopes of Sharing in the Profits of the business – Dividends – a pay out of profits from the company Selling the stock for a higher price than we bought it

16. Stocks The riskiest financial instrument – But also the highest potential for a large return You must go through a stock broker that will purchase stocks for you for a fee – They will go to the stock exchange and find a seller of the stock

17. Stocks Investors want to get in on the ground level for stocks and see the price of their shares rise Investors follow trends and try to speculate where stocks will be – Illegal: Insider trading Talking to those within a company that have “inside information” about the dealings of that company – Legal: Dow Jones Index A grouping of 20 of North America’s most successful businesses that tend to follow the financial trend of the economy in general

18. Dow Jones

19. Investing Mutual Funds – A combination of stocks and bonds that are taken care of by a profession fund manager – The fund manager buys and sells the stocks and bonds in order to get your a return on your money – Riskier than bonds, but not as much as stocks – Guaranteed Investment Certificates (GIC’s) – An investment of a principal that may not be withdrawn for a certain amount of time – After a fixed term you receive your money back plus an agreed interest rate The interest rate will be higher than your saving account

20. Investing Financial ToolSafetyIncome (if invested) Growth BondsHighSteady IncomeLimited StocksRelatively LowVariableHighest Potential GICVery HighGuaranteed Set Amount Return Set at the date of investment Mutual FundsFairly SafeModerate

21. Today’s Assignment NYSE stock lookup assignment This website will help you a lot http://www.investopedia.com/university/stoc ks/stocks6.asp