Types of Investments

Today and tomorrow we will be watching a section of Dave Ramsey's video on Types of Investments and discussing what different types of investments mean.

First, check your Market Watch game here: http://www.marketwatch.com/game/khs2014 


Using Microsoft Word, answer the following questions:

Money Markets

• A C.D. is a __________ __ ___________, typically at a bank.
• Money market mutual funds are ____________ risk money market accounts with check writing privileges. 
• These are great for __________ _________.

Single Stocks

• Single stock investing carries an extremely _______ degree of risk.
• When you buy stock, you are buying a small piece of __________ in the company.
• Your return comes as the company increases in _________ or pays you, its owner, some of the profits (_______________).

Bonds

• A bond is a _________ instrument by which the company owes _______ money.
• Your return is the fluctuation in price and the _________ rate paid.  
• Few individuals do well with _______ _________ purchases.

Mutual Funds

• Investors pool their ___________ to invest.
• Portfolio managers manage the pool or ___________.
• Your __________ comes as the ____________ of the fund is increased.
• Mutual funds are good ____________ term investments.

Real Estate

• Least ________ consumer investment.
• You should have lots of ________ before using real estate as an ______________.

Annuities

• Annuities are _______ accounts with an _________ company.
• _______ annuities are at a low interest rate of around 5%, aren't really fixed, and are a ________ investment.
• _______ annuities are mutual funds sheltered by the annuity covering, thereby allowing the mutual fund to grow tax-deferred.

Horrible Investments

• Gold
• _______ & Futures
• Day __________
• Viaticals

The Basics of Investing

Today we will begin discussing investment strategies and the Stock market:

• Today we will watch a brief cartoon about how the New York Stock Exchange works.  It's a bit choppy in parts, but I think it's a great explanation of how the Stock Exchange works -- and has worked since the cartoon was made... about 60 years ago!

• Finally we will begin researching individual stocks that you have an interest in.  For example, if you wear a certain clothing brand, drink a certain beverage, or play a particular video game, those might give you some places to start.  
• Go to http://finance.google.com
• Find 9 different stocks that you have an interest in
• Complete the following information about your stocks (you will receive a worksheet -- or you can download a copy here)

Individual Stocks:

• Company Name:
• Stock Symbol:
• Current Stock Value: $
• 52-Week Low: $
• 52-Week High: $
• News about this company: 

Make a note on your page about which stocks seem like they have the most earning potential -- and explain why.