Financial Institutions vs. Financial Markets
|
|
- Henry Horton
- 5 years ago
- Views:
Transcription
1 Learning Objectives 1. I will gain an understanding of the different types of investment. 2. I will gain an understanding of the expected rate of return, risk, and liquidity for specific types of investments.
2 Financial Institutions vs. Financial Markets A financial institution collects funds from the public and places them in financial assets (deposits, loans, etc.) think of a bank
3 Financial Institutions vs. Financial Markets A financial market describes any marketplace where buyers and sellers trade assets, such as stocks and bonds They are characterized by trading regulations and/or fees for trading them Examples of financial markets include the New York Stock Exchange (NYSE) and the bond market
4 Key Financial Terms Investment: Putting money someplace with the intention of making a financial gain Most often, people are saving for their retirement Examples include: stocks, bonds, mutual funds, and real estate
5 Key Financial Terms Portfolio: A collection of investments owned by one individual or organization Financial advisors suggest diversifying your portfolio to have multiple types of investments
6 Key Financial Terms Rate of return: Return on an asset over a given period divided by the market value of the asset This is paid in dividends or interest and is expressed as a percent The three factors that influence rate of return are risk, liquidity, and time
7 Key Financial Terms Risk: The chance of losing all or part of the value of an investment Conservative (low) risk investments have a low rate of return Speculative (high) risk investments can lead to great returns or heavy losses
8 Key Financial Terms What risk is best for you? Depends on several factors Young investors can afford riskier investments If you are closer to retirement, you should balance your risk with some safer investments
9 Risk versus Reward High risk Medium risk Low risk Oil and gas commodities Penny stocks Real estate Blue chip stocks Mutual funds Variable life and annuities Municipal bonds Money market funds Certificates of Deposit (CDs) Bonds Treasury bonds
10 Key Financial Terms Liquidity: How accessible the investment/savings is and how easily it can be converted to cash Money in savings can easily be withdrawn for spending, but a house takes time to convert into cash
11 Key Financial Terms Time: The length of time an investment is held usually influences the rate of return Longer held investments usually produce a higher rate of return than those held for a shorter period of time
12 Key Financial Terms The Rule of 72: divide 72 by the interest rate you expect to earn This will tell you how long it will take to double your money Example: 72/6% = 12 years to double your money Example: $100 earns you 5% interest After one year you have $105 After two years it becomes $ After 25 years it will be almost $340
13 Key Financial Terms Costs: Charges, fees, or other expenses associated with buying, selling, or holding an investment For example, such costs include account maintenance fees, broker charges for buying and selling stocks, closing costs for buying or selling a house, minimum balance requirements, and mutual fund management fees
14 Investing 101
15 Think about 1. Why should you save and invest? 2. When should you start saving/investing? 3. What should you invest in? Why? 4. What is the difference between buying stock and buying bonds? 5. How much money do you anticipate needing for college? How do you plan to pay for it?
16 Basic Tips Know your income and expenses for each month Pay yourself first! Use automatic withdrawals or transfers to a savings or retirement account Participate in an employer-sponsored 401 (k), 403 (b) or 457 (b)
17 Basic Tips Cut back on expenses so you can invest If you bought a $2 pop each day for 1 year you could have saved $730 If you had invested that original amount at 5% interest, it would be over $3,150 after 30 years
18 Basic Tips Pay off credit cards and high interest debt Pay off the card with the highest interest rate Always know what you owe
19 Saving versus Investing Savings is money put into safe places that allow you to access your money at any time Examples: Savings accounts, checking accounts, and CDs
20 Saving versus Investing Investing means putting your money into securities and mutual funds (real estate, etc.) This money is not insured and can be lost but there is the opportunity to make money on your investments
21 Types of Investments: What should I invest in? WHAT SHOULD I INVEST IN?
22 Cash Cash: There are no costs associated with holding cash, but there is also no return and its value diminishes due to inflation It may seem that holding cash has no risk; however, cash is vulnerable to loss or theft
23 Checking accounts Checking accounts: Allows the account owner to deposit and withdraw funds Account owners have the privilege of writing checks on their accounts and using ATM cards and debit cards to access funds Accounts in FDIC member banks are insured up to $250,000 Your principal will always be available to you, but you will receive little or no return
24 Savings Accounts Savings accounts: Accounts in which people can deposit their money for future use and earn interest Accounts in FDIC member banks are insured up to $250,000 You will never lose your principal, but your return will be relatively small
25 Money Market Deposit Accounts Money market deposit accounts: Operates like a savings account but with a higher minimum investment They are usually FDIC insured up to $250,000 and offer limited checkwriting privileges, so your money is fairly accessible
26 CDs Certificates of deposit (CDs): A saving alternative in which money is left on deposit for a stated period of time to earn a specific interest rate Pay fixed or variable interest (which can be reinvested to accrue compound interest)
27 CDs Longer maturity dates pay higher interest rates They are very safe and offer a greater return than a savings accounts, but access carries a penalty if money is withdrawn before the specified time
28 Real Estate Real estate: Residential or commercial property The recent housing bubble illustrated the risk in real estate Risk depends on the market and economic conditions
29 Commodities Commodities such as gold and silver, are speculative In general, their values grow in times of economic uncertainty but returns are relatively low during steady economic times
30 Collectibles Collectibles vary greatly in value and popularity as do their potential for risk and return Some art, coins, and stamps may increase in value and provide a return, while others collectibles, for example, Beanie Babies, may not
31 Stocks and the Stock Market Stock: A type of security that represents ownership in a business When a company issues stock, it is selling ownership rights The investors who buy the company s stock are called shareholders Some stocks are riskier than others
32 Stocks and the Stock Market Generally, the lower the price, the higher the risk Potential returns on stocks are greater than those from bonds or insured savings to account for the greater risk
33 Stocks and the Stock Market Preferred stock: gives shareholders a share of profits with no voting rights Pays dividends Have priority over common stockholders Dividends do not increase if stock increases in value
34 Stocks and the Stock Market Common stock: represents ownership in a corporation Exercise control by electing a board of directors The last to be paid if the company is liquidated
35 Stocks and the Stock Market Income stocks: Shares in what investors consider to be very stable and profitable companies, and they usually pay dividends
36 Stocks and the Stock Market Growth stocks: Shares in companies that might be smaller, younger companies, but have the potential to grow much larger in the future These stocks are less likely to pay dividends (because they often reinvest profits for growth) They are considered to be more risky than income stocks
37 Stocks and the Stock Market Stock market: This is where the buying and selling of stocks and bonds takes place
38 Stocks and the Stock Market Types of Exchanges The NASDAQ Stock Market is the largest electronic stock market in the U.S. Handles billions of shares per day
39 Stocks and the Stock Market The NYSE handles exchanges involving about 2 billion shares of stock each day The stock market is regulated by the Securities and Exchange Commission (SEC) that was created during the Great Depression-era
40 Stocks and the Stock Market Dow Jones Industrial Average (Dow): A popular index of stock prices consisting of 30 large well-known companies in major sectors of the economy Examples: Apple, Exxon Mobile, Microsoft, McDonald s, Nike, GE, Home Depot, Walmart, Verizon, and Coca-Cola
41 Bonds Bond: A loan in which the borrower promises to pay the lender a fixed rate of interest and repay the principal at the date of maturity Think of a bond as an IOU that pays interest
42 Bonds U.S. savings bonds: Debt securities issued by the U.S. government Buying a bond is essentially the same as lending money to the U.S. government You can purchase a bond for as little as $25 Bonds are backed by the full faith and credit of the U.S. government, making them one of the safest investments
43 Bonds U.S. Treasury bond: Bonds backed by the full faith and credit of the U.S. government These are the safest bonds to invest in; you will not lose your principal and there is no chance of default
44 Bonds When the government spends more than it collects in taxes and other revenues, it issues Treasury bonds to borrow the money to pay the difference The return is usually greater than from savings accounts or certificates of deposit
45 Bonds Corporate bonds: Debt issued by corporations If a company wants to borrow money to finance a project, it might borrow from the public by issuing a bond The return on a corporate bond will be greater than on a government bond because there is a risk of default They are rated from AAA to BBB
46 Bonds Municipal bond: Issued by state and local governments for public projects, such as building schools, bridges, and highways These bonds are usually tax-exempt and that is attractive to investors
47 Mutual Funds Mutual funds: Collections of financial assets such as stocks and/or bonds that provide a means of diversification Some funds are more risky than others because they have a more uncertain future value
48 Mutual Funds Returns on mutual funds vary based on the financial assets held by the fund Mutual fund companies charge investors fees to manage the portfolio of investments, and these fees can vary widely based on the fund
49 Saving for Retirement SAVING FOR RETIREMENT
50 Social Security Social Security is a government program that provides cash payments to retired workers; it is a pay-as-you-go plan It is funded by taxes paid by workers and their employers This means that the Social Security taxes you pay each year are not saved for your future retirement This money is paid out in benefits to current retirees
51 Company Retirement Plans A pension plan is a retirement plan to which the employer makes contributions for the future benefit of its employees Today, the most common company retirement plan is the 401(k) plan In a 401(k) plan, employees have money automatically taken out of their paychecks and put into retirement investment accounts
52 Company Retirement Plans Employers may also contribute to the plan by matching all or part of an employee s contribution One benefit of a 401(k) plan is that participants may subtract their contributions from their taxable income when they file their tax returns The effect is to lower the amount of income tax they are required to pay Risk depends on how it is invested: stocks, bonds, and /or mutual funds
53 Personal Savings The third source of retirement funds is personal savings Such savings may include a variety of financial assets, including private retirement plans plans that are not employersponsored
54 Personal Savings An Individual Retirement Account (IRA) is a retirement plan sponsored by the federal government Anyone who earns income can put money into an IRA
55 Personal Savings To encourage people to do so, the government has built tax advantages into IRA plans Depending on the type of plan they choose, participants may either deduct the amount of their IRA contributions from their taxable incomes or take money out of their accounts tax free when they retire For this reason, IRAs are often referred to as tax-sheltered savings accounts
Investing Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (EA)
How Do Americans Invest Their Savings? (EA) Learning how to save money for future use is an important first step in reaching your long-term goals. But saving alone is not enough. You will also need to
More informationLesson standards. E.6.3 Explain the roles of financial institutions. E.6.6 Explain how interest rates act as an incentive for savers and borrowers.
Lesson standards E.6.3 Explain the roles of financial institutions. E.6.6 Explain how interest rates act as an incentive for savers and borrowers. E.6.7 Compare and contrast different types of financial
More informationSaving and Investing. Your Money at Work
Saving and Investing Your Money at Work Savings vs. Investing SAVINGS Savings is usually money you set aside for short-term goals. Money in savings may be invested later. Money in savings is very safe.
More informationSavings is the portion of current income not spent on consumption. Savings account, money markets, certificate of deposit (CD)
Investing Saving vs. Investing Savings is the portion of current income not spent on consumption. Savings account, money markets, certificate of deposit (CD) Investing is the purchase of assets with the
More informationChecking, Saving, Investing, and Protecting your money Unit 3
Checking, Saving, Investing, and Protecting your money Unit 3 Banks Financial Institutions licensed to receive and utilize deposits There are 2 main types of Banks Retail/Commercial Banks- Financial Institutions
More informationFinancial Literacy - Money Trek
Financial Literacy - Money Trek MODULE 5 - SAVING & INVESTING PREPARED BY: FINANCIAL LITERACY COMMITTEE, AAUW CALIFORNIA Objectives Identify ways to save money. Understand why it is important to save.
More informationUNIT 2: PRACTICAL ECONOMICS; HOW THEORY WORKS FOR YOU CHAPTER 6: SAVING AND INVESTING
UNIT 2: PRACTICAL ECONOMICS; HOW THEORY WORKS FOR YOU CHAPTER 6: SAVING AND INVESTING Lesson 6-1 I.Deciding to Save A. people save for purchases that require more funds than available, for emergencies,
More informationChapter 11 Questions A B C D
Chapter 11 Questions A B C D Which of these is NOT a part of the financial system? governments to control the market organizations that bring funds and assets together the funds that a saver transfer to
More informationEmployee Investment Handbook
Employee Investment Handbook Employee Investment Handbook The material used in this text has been drawn from sources believed to be reliable. Every effort has been made to ensure the accuracy of the material.
More information2 Basic Types of Stock. Stock Classifications
The Language of the Market Family Economics & Financial i Education Why Learn About s The stock market is the core of America s economic system is a share of ownership in the assets and earnings of a company
More informationDRIVING MY FINANCIAL FUTURE
STUDENT ACTIVITY 2 Write all of the things you d like to have or do that cost money, you can make the list as long as you want. Review the items you have listed and group them into the 3 category boxes
More informationInvesting in Stocks. Chapter 31
Investing in Stocks Chapter 31 You can only get poor quickly; getting rich takes time Investing is putting your money to use in order to make money on it Putting money in a savings account is a form of
More informationWhy Learn About Stocks The stock market is the core of America s economic system
Financial Literacy What Are Stocks Why Learn About Stocks The stock market is the core of America s economic system Stock is a share of ownership in the assets and earnings of a company Bond is a type
More informationGlossary of General Investment-Related Terms
Glossary of General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual funds or share classes permitted under an SEC rule to help cover the costs associated with marketing and selling
More informationGLOSSARY OF FINANCIAL TERMS
GLOSSARY OF FINANCIAL TERMS Financial Terms AGI (Adjusted Gross Income) This is what the IRS considers your annual income BEFORE you ve subtracted personal exemptions, deductions, and credits. It can be
More informationSaving and Investing
Presentation Slides $ Lesson Twelve Saving and Investing 04/09 pay yourself first (a little can add up) example 1: Save this each week At % Interest In 10 years you ll have $7.00 5% $4,720 $14.00 5% $9,400
More informationPay. Yourself. First
Pay Yourself First Welcome 1. Agenda 2. Ground Rules 3. Introductions Pay Yourself First 2 Objectives Explain why it is important to save Determine goals for saving money Identify savings options Determine
More informationBonds and Other Financial Instruments
SECTION 4 Bonds and Other Financial Instruments OBJECTIVES KEY TERMS TAKING NOTES In Section 4, you will discuss why people buy bonds describe the different kinds of bonds explain the factors that affect
More informationLESSON PLAN. Saving and Investing
LESSON PLAN Saving and Investing Introduce the advantages and disadvantages of common savings and investment vehicles, and show the short- and long-term effects of various savings and investment choices.
More informationStock Market Basics FIN 1050
Stock Market Basics FIN 1050 Why Learn About Stocks The stock market is the core of America s economic system A Stock is a share of ownership in the assets and earnings of a company A Bond is a type of
More informationYour guide to investment terms
Understanding the language of investing Your guide to investment terms The investment world seems to have a language of its own. The novice or even veteran investor can be confused by it from time to time.
More informationLearn about bond investing. Investor education
Learn about bond investing Investor education The dual roles bonds can play in your portfolio Bonds can play an important role in a welldiversified investment portfolio, helping to offset the volatility
More informationGlossary Of Investment-Related Terms
Glossary Of Investment-Related Terms PART 1 General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual funds or share classes permitted under an SEC rule to help cover the costs associated
More informationChapter 10: Money and Banking Section 3
Chapter 10: Money and Banking Section 3 Objectives 1. Explain how the money supply in the United States is measured. 2. Describe the functions of financial institutions. 3. Identify different types of
More informationHow Does the Banking System Work? (EA)
How Does the Banking System Work? (EA) What do you notice when you enter a bank? Perhaps you pass an automated teller machine in the lobby. ATMs can dispense cash, accept deposits, and make transfers from
More information401(k) 529 plan a American Stock Exchange (ASE) annual fee annual percentage rate (APR) asset auto insurance b bad debt balance bank bankruptcy
401(k) A retirement savings plan funded by employees and often matched by contributions from the employer; contributions are usually made before taxes and grow tax-free until withdrawn, although after-tax
More informationInvestment Terms Glossary
Investment Terms Glossary 12b-1 Fee: A fee assessed on certain funds and associated share classes permitted under an SEC rule to help cover the cost associated with marketing and selling the fund; 12b-1
More informationGLOSSArY OF RETIREMENT TERMS
FIRST SECURITY BENEFIT LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK GLOSSArY OF RETIREMENT TERMS 401(k ) A defined contribution plan offered by a corporation to its employees, which allows employees
More informationCHAPTER 5-THE BANKING SYSTEM. Section 2- Savings Accounts
CHAPTER 5-THE BANKING SYSTEM Section 2- Savings Accounts THE PURPOSE OF SAVINGS To save money for your future wants and needs Helps you meet your financial goals Every personal goal, should have financial
More informationDEBT. Liabilities A liability is a company s (or individual s) financial debt or obligations that arise during the course of its business operations.
FINANCIAL ABCs DEBT Amortization Amortization is the paying off of debt with a fixed repayment schedule in regular installments over a period of time, e.g., with a mortgage or a car loan. Annual Percentage
More informationStock Market. Copyright 2007 Pearson Addison-Wesley. All rights reserved. 12-1
Stock Market Copyright 2007 Pearson Addison-Wesley. All rights reserved. 12-1 What is a Stock Stock implies ownership of the company, with each share of stock representing a tiny piece of ownership of
More informationSample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.00 December 19, 2011 General Information SAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES
More informationchapter six PUTTING YOUR MONEY TO WORK
chapter six Once you ve established your investment plan you can determine which financial products are best suited for your goals. Besides stocks, a growing number of other types of securities trade on
More informationUnderstanding the Language of Investing Your Guide to Investment Terms
Understanding the Language of Investing Your Guide to Investment Terms The investment world seems to have a language of its own. The novice or even veteran investor can be confused by it from time to time.
More informationPFIN 10: Understanding Saving and Investing 62
PFIN 10: Understanding Saving and Investing 62 10-1 Reasons for Saving and Investing OBJECTIVES Explain the difference between saving and investing. Describe reasons for saving and investing. Describe
More informationSavings and Investing
Savings and Investing Personal Finance Project You must show evidence of your reading either with highlighting or annotating (not just the first page but the whole packet) This packet is due at the end
More informationChapter 11: Financial Markets Section 3
Chapter 11: Financial Markets Section 3 Objectives 1. Identify the benefits and risks of buying stocks. 2. Describe how stocks are traded. 3. Explain how stock performance is measured. 4. Describe the
More informationWhy Learn About Stocks?
Language of the Stock Market Family Economics & Financial Education 1.12.2.F1 Why Learn About Stocks? O ne hears about the stock market on a daily basis. Not necessarily because they want to, but because
More informationChapter 13. Methods of Saving Pearson Education, Inc. All rights reserved
Chapter 13 Methods of Saving 2010 Pearson Education, Inc. All rights reserved Learning Objectives Explore the ways in which savings can earn interest Examine the different types of bank accounts that can
More informationSession II: Where to Invest. Byron Caskey Financial Consultant February 14, 2017
Session II: Where to Invest Byron Caskey Financial Consultant February 14, 2017 1 Seek the advice of tax and legal advisors This presentation is designed to provide accurate and authoritative information
More informationWHAT IS MONEY? Unit of Exchange. Types of Money. Pine Gulch Skit 12/12/2016
Pine Gulch Skit WHAT IS MONEY? Unit of Exchange Under the Barter System Barter (trade) is the exchange of one good or service for another Requires double coincidence of want both people have to want what
More informationSAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES TO RETIREMENT PLAN PARTICIPANTS (Version 1.01 April 26, 2012)
General Information SAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES TO RETIREMENT PLAN PARTICIPANTS (Version 1.01 April 26, 2012) The Sample Glossary of Investment-Related Terms for Disclosures
More informationLanguage of the Stock Market
1.12.2.A1 Worksheet Language of the Stock Market Total Points Earned 41 Total Points Possible Percentage Name Date Class Directions: Complete the following worksheet in conjunction with the Language of
More informationexcerpt from The Wealthy Barber by David Chilton
Section 03 Unit 02 Banking Services Saving & Investing 03.02. Wealth beyond your wildest dreams is possible if you learn the golden secret: Invest ten percent of all you make for long-term growth. If you
More informationInvesting for the Future
Chapter 11 Investing for the Future 11.1 Basic Investing Concepts 11.2 Making Investment Choices 2010 South-Western, Cengage Learning Lesson 11.1 Basic Investing Concepts GOALS Why should you should consider
More informationFINANCIAL FITNESS CENTER COURSES
Primary Subject Accounting Accounting Accounting Estate Planning Estate Planning Estate Planning ETFs ETFs Financial Institutions Tutorial Understanding the Balance Sheet Understanding the Income Statement
More informationInvestments 10th Edition Bodie Test Bank Full Download:
Investments 10th Edition Bodie Test Bank Full Download: http://testbanklive.com/download/investments-10th-edition-bodie-test-bank/ Chapter 02 Asset Classes and Financial Instruments Multiple Choice Questions
More informationPage 1 of 30. Analysis. MSDE Financial Literacy
Standards MSDE Financial Literacy Stocks in the Future Grade Six STANDARD 1: MAKE INFORMED, FINANCIALLY RESPONSIBLE DECISIONS -- Students will apply financial literacy reasoning in order to make informed,
More informationIt seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win.
Bell Ringer It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win. -John Paul Jones What does the quote mean? Restate the quote in your own words. When was
More informationChapter 11. Section 2: Bonds & Other Financial Assets
Chapter 11 Section 2: Bonds & Other Financial Assets Bonds as Financial Assets Bonds are basically loans, or IOUs, that represent debt that the government or a corporation must repay to an investor. Typically
More informationIntroduction to Investing
Introduction to Investing "Take Charge of Your Finances" Advanced Level Saving and Investing Once an appropriate amount of liquid assets are reached Remember: The purpose of savings is to develop financial
More informationChapter 11: Financial Markets Section 2
Chapter 11: Financial Markets Section 2 Objectives 1. Describe the characteristics of bonds as financial assets. 2. Identify different types of bonds. 3. Describe the characteristics of other types of
More informationBANKING & FINANCE (06) Regional 2006
8 Pages Contestant Number BANKING & FINANCE (06) Regional 2006 Time Rank Objective Portion (30 @ 2 pts. each) (60) Production Portion Job 1 Deposit Ticket (10 @ 2 pts. each) (20) Job 2 Check Writing (12
More informationThe Pyramid of Risk and Rewards
NAME: CLASS PERIOD: The Pyramid of Risk and Rewards Highest Risk: Highest Potential Return or Loss Speculative Stocks Real Estate Individual Stocks Stock Mutual Funds Money Market Mutual Funds Insured
More informationEssential Questions. It takes money to make money
Essential Questions 1. How does the time value of money affect the future value of an investment? 2. Why is it important to diversify your investments? 3. How are liquidity and diversification related?
More informationPERSONAL FINANCIAL MANAGEMENT- PILOT (192)
PERSONAL FINANCIAL MANAGEMENT CONCEPTS REGIONAL 2015 Page 1 of 10 PERSONAL FINANCIAL MANAGEMENT- PILOT (192) OPEN EVENT REGIONAL 2015 DO NOT WRITE ON TEST BOOKLET TOTAL POINTS (500) Failure to adhere to
More informationTest Bank for Investments Global Edition 10th Edition by Zvi Bodie, Alex Kane and Alan J. Marcus
Test Bank for Investments Global Edition 10th Edition by Zvi Bodie, Alex Kane and Alan J. Marcus Link download full: https://digitalcontentmarket.org/download/test-bankfor-investments-global-edition-10th-edition-by-bodie
More informationTips from the Treasurer
Tips from the Treasurer Saving & Investing Money Saving for the Long Term Investing Responsibly City Treasurer Kurt Summers SAVING FOR THE LONG TERM 53 Saving for College Education 529 College Savings
More informationChapter 10: Money and Banking Section 1
Chapter 10: Money and Banking Section 1 Key Terms money: anything that serves as a medium of exchange, a unit of account, and a store of value medium of exchange: anything that is used to determine value
More informationSection 8.1. I. Percent per hundred
1 Section 8.1 I. Percent per hundred a. Fractions to Percents: 1. Write the fraction as an improper fraction 2. Divide the numerator by the denominator 3. Multiply by 100 (Move the decimal two times Right)
More informationPersonal Finance Unit 3 Chapter Glencoe/McGraw-Hill
Chapter 9 Stocks What You ll Learn Section 9.1 Explain the reasons for investing in common stock. Explain the reasons for investing in preferred stock. Section 9.2 Identify the types of stock investments.
More informationWEALTH CARE KIT SM. Investment Planning. A website built by the National Endowment for Financial Education dedicated to your financial well-being.
WEALTH CARE KIT SM Investment Planning A website built by the dedicated to your financial well-being. Do you have long-term goals you re uncertain how to finance? Are you a saver or an investor? Have you
More informationBUYER S GUIDE TO FIXED INDEX ANNUITIES
BUYER S GUIDE TO FIXED INDEX ANNUITIES Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory
More informationTeens Glossary Terms. (see Bank account)
Teens Glossary Terms Account Account balance Account fee Annual fee Annual percentage rate (APR) Automated teller machine (ATM) Available Balance Bad check Bad credit Balance your checkbook Bank (see Bank
More informationIntroduction to Investments. Kristi C. Barger, CTFA Vice President & Senior Trust Officer Relyance Bank Wealth Management & Investments
Introduction to Investments Kristi C. Barger, CTFA Vice President & Senior Trust Officer Relyance Bank Wealth Management & Investments Trust clients are bombarded daily with investment information from
More informationA GUIDE TO PREPARING FOR RETIREMENT
A GUIDE TO PREPARING FOR RETIREMENT MaineSaves A Guide to Preparing for Retirement MaineSaves, the State of Maine s voluntary retirement savings plan, is designed to help you move forward on your journey
More informationTypes of Investments
Types of Investments Types of Investments Stocks Bonds Mutual Funds Real Estate Savings/Certificates of Deposit Collectibles Stocks An investment that represents ownership in a company or corporation.
More informationChapter 02: Asset Classes and Financial Instruments
Test Bank for Investments and Portfolio Management 9th Edition by Bodie, Kane, Marcus Link download full Test Bank for Investments and Portfolio Management 9th Edition by Bodie, Kane, Marcus: https://digitalcontentmarket.org/download/test-bank-for-investments-and-portfolio-management-
More informationAdding Mutual Funds to a Stock Portfolio Adding Stocks to a Fund Portfolio. An Introduction to Initial Public Offerings
Primary Subject Accounting Tutorial 20 Stock-Investing Tips 401(k) Plans A Simple Adding to a Stock Adding to a Fund Advantages of Alternative Investments Alternatives to Probate American Depository Receipts
More informationYOU DESERVE BOTH. PROTECTION AND GROWTH OPPORTUNITY. PruSecure Advisor SM FIXED INDEXED ANNUITY. Prudential Annuities
Prudential Annuities PruSecure Advisor SM FIXED INDEXED ANNUITY PROTECTION AND GROWTH OPPORTUNITY. YOU DESERVE BOTH. Issued by Prudential Annuities Life Assurance Corporation. This material must be preceded
More informationSavings and Investment
Lecture Notes for Chapter 3 of MACROECONOMICS: An Introduction Savings and Investment Copyright 2000-2009 by Charles R. Nelson 1/8/09 In this chapter we will discuss- How savings becomes investment. Banks
More informationCh. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM
Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM To "finance" something means to pay for it. Since money (or credit) is the means of payment, "financial" basically means "pertaining to money or credit." Financial
More informationAnnuities in Retirement Income Planning
For much of the recent past, individuals entering retirement could look to a number of potential sources for the steady income needed to maintain a decent standard of living: Defined benefit (DB) employer
More informationChapter 1-3. Topics in Financial Decisions. Financial System and the Economy. Financial system affects the economic performance It consists of
Chapter 1-3 Topics in Financial Decisions Financial system affects the economic performance It consists of Financial markets Financial institutions Money How does each of the above affect the economy?
More information+ Why Save? + Savings & Investing
+ + Why Save? Savings is the setting aside of income for a period of time so that it can be used later. For What? - Major Purchases, Emergencies, Retirement Savings provides funds for others to invest
More informationMoney Mondays. Growing Your Wealth. Charles A. Thomas
Money Mondays Growing Your Wealth Charles A. Thomas Our Hopes For You n You will reflect on your relationship with God. n You will leave more aware of how your financial behavior is influenced. n You will
More informationWhat Is A Bond? The ABCs of Bonds
The ABCs of Bonds What Are Bonds? Imagine that you are in the ice cream store with a friend on a Thursday evening and want to get a hot fudge sundae, but you realize you don't have any cash. You know you'll
More informationMaineSTART - Saving Today to Afford Retirement Tomorrow. A penny saved is a penny earned. - Benjamin Franklin. A MainePERS Program
A penny saved is a penny earned - Benjamin Franklin A MainePERS Program APRIL 2019 Why Save? While many of us talk about retirement, the truth is that too many of us don t do enough to plan for our retirement.
More informationReceiving Required Minimum Distributions. Making it simple with TIAA
Receiving Required Minimum Distributions Making it simple with TIAA Required Minimum Distributions what you need to know What are Required Minimum Distributions? 1 How can you receive minimum distributions
More informationUnit 4: Types of Mutual Funds
Unit 4: Types of Mutual Funds Welcome to Types of Mutual Funds. This unit gives you an overview of the types of mutual funds available. Before providing your client with an investment solution, you need
More informationMutual Fund Investing: Investment Concepts to Consider
GET THE FACTS! Mutual Fund Investing: Investment Concepts to Consider This guide discusses some of the investment concepts and goals that you should consider when you invest in mutual funds. The first
More informationUnit 5 Financial Literacy
Unit 5 Financial Literacy MONEY Money is anything that people will accept as payment for goods and services and it should perform three important functions: 1) Medium of Exchange- the means through which
More informationAn Insider s Guide to Annuities. The Safe Money Guide. retirement security investment growth
The Safe Money Guide retirement security investment growth An Insider s Guide to Annuities 1 Presented by Joe Brown Brown Advisory Group, LLC http://joebrown.retirevillage.com An Insider s Guide to Annuities
More informationMacro Lecture 5: Financial Assets
Macro Lecture 5: Financial Assets Financial Assets and Rates of Return Table 5.1 reports on the recent nominal rates of return for selected financial assets: Cash 0% Checking Accounts.01% Savings Accounts.03%
More informationWHERE DO I INVEST MY MONEY?
WHERE DO I INVEST MY MONEY? T DERRICK LEE here are a myriad of choices available for an investor to put their money to work. Perhaps the most popular vehicle is the savings account offered by banks and
More informationRE CAPITAL GROUP PRIVATE LENDER PRESENTATION
RE CAPITAL GROUP www.recapitalgroup.net PRIVATE LENDER PRESENTATION Be The Bank! Become A Private Money Lender Invest In Real Estate For Guaranteed Returns of up to 12% Annually What Is Private Money Lending?
More informationJournal. 1. When will you be wealthy? 2. At what point is someone wealthy?
Journal 1. When will you be wealthy? 2. At what point is someone wealthy? Habits Of Wealth What is a HABIT? Something you do without thinking about it. At what point is someone considered wealthy? Do you
More informationPFIN 5: Banking Procedures 24
PFIN 5: Banking Procedures 24 5 1 Checking Accounts OBJECTIVES Explain the purpose and use of a checking account. Prepare a checkbook register. Write a check and prepare a deposit slip. Prepare a bank
More informationP.Y.F. Participant s Guide
P.Y.F. Participant s Guide 1 Table of Contents Welcome Pre-Test Pay Yourself First Saving for Purchases Emergency Savings Retirement Savings Daily Decisions Matter Savings Tips How Your Money Grows (Simple
More informationTable of Contents. Money Smart for Adults Curriculum Page 2 of 45
Table of Contents Getting Started... 3 Module 5: Pay Yourself First Layering Table... 4 Icons Guide... 5 Module Overview... 6 Checking In... 7 Pre-Test... 9 Overview of Saving... 11 Savings Tips... 12
More informationFirst Rule of Successful Investing: Setting Goals
Morgan Keegan The Lynde Group 4400 Post Oak Parkway Suite 2670 Houston, TX 77027 (713)840-3640 hal.lynde@morgankeegan.com hal.lynde.mkadvisor.com First Rule of Successful Investing: Setting Goals Morgan
More informationMoneythink CCSS. How to Adult: A Two-Part Workshop Series on Financial Planning February 6, 2017
Moneythink CCSS How to Adult: A Two-Part Workshop Series on Financial Planning February 6, 2017 Moneythink Moneythink UChicago, Fall 2017 Moneythink Kwaku Ofori-Atta 4th Year, Computer Science Dalton Schmit
More informationFoundations in Personal Finance - Chapter 8 Test
Foundations in Personal Finance - Chapter 8 Test Name Date MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Long-term investments, properly diversified,
More informationImportant Information About Your Investments
Primerica Advisors Important Information About Your Investments This brochure contains important information about investing with Primerica, Inc., a financial services company whose stock is traded on
More informationIndividual Retirement Accounts Roth & Traditional. IRAs Guidebook
Individual Retirement Accounts Roth & Traditional IRAs Guidebook 2016 IRA Roth & Traditional Individual Retirement Accounts At-a-Glance Eligibility Contents IRAs At-a-Glance... 1 Roth IRA... 2... 3 Roth
More informationTurbid Tuesday, November 13
Turbid Tuesday, November 13 Warm up: Talk to your neighbor about what you plan to do to earn and save enough money for retirement. Talk about how old you d like to be when you retire and how much money
More informationPersonal Finance Part 3
Personal Finance Part 3 Before a company can raise capital by issuing stocks or bonds, it must register the stock or bond issue with the Securities and Exchange Commission (SEC). Take Charge Today August
More informationAlternative Retirement Financial Plans and Their Features
RETIREMENT ACCOUNTS Gary R. Evans, 2006-2017, September 20, 2017. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial
More informationPresentation Notes for Take It to the Bank- A Guide to Saving and Investments. Take It To The Bank. A Guide to Saving and Investments
Presentation Notes for - A Guide to Saving and Investments Slide 1 Take It To The Bank A Guide to Saving and Investments Page1 Slide 2 Copyright Copyright Texas Education Agency, 2013. These Materials
More informationFinancial Literacy: Investing
tocks: When you own stock in a company, the number of shares you own represent equity, also called ownership, in the company. he value of your investment is then based on the value of the company. Bonds:
More information