Types of Investments

• Property

• Certification of Deposit

• Money Market Account

• Savings

• Stocks

• Bonds

Stocks

• Stocks is an investment that represents ownership in a company or corporation.

3 Basic Indicators

• Dow Jones Industrial Average(“DOW”)

  • DOW lists the 30 lending industrial blue chip stocks

• Standard and Poor’s Composite Index

  • Covers market activity for 500 stocks

  • More accurate than DOW because it evaluates a greater variety of stocks

• National Association of Security Dealers Automated Quotations(“NASDAQ”)

  • Monitors the fast moving technology companies

Ups and Downs

• Bull market

  • The market is going well 

    • Reasons why it is going well

      • Investors are optimistic about the economy purchasing stock

• Bear market

  • The market is doing poorly

    • Reasons why it is going poorly

      • Investors are not purchasing stocks, but selling stocks already owned.

Broker

• A broker is a person who is licensed to buy and sell stocks, provide investment advice, and collect or commission on each purchase or sale.

Bonds

• A bond is a security representing a loan of money from a lender to a borrower for a set time period, which pays a fixed rate of interest.

Mutual Funds

• Mutual Funds are investments that pools money from several investors to buy a particular type of investment, such as stocks.

Real Estate

• An investor buys pieces of property, such as land or a building, in hopes of generating a profit.

Certificates of Deposits/Savings

• A Certificate of Deposits is a deposit that earns a fixed interest rate for a specified length of time.

  • The longer the time period, the greater the rate of penalty return

Collectibles

• Unique items that are relatively rare or have high value

  • Examples

    • Art work,

    • Baseball trading cards

    • Coins

    • Automobiles,

    • Antiques

Risk US Return

• On Average, stocks have a high rate of return

  • Higher rate of return = greater risk

  • Stocks provide portfolio diversification