1 Introduction To Financial Markets & Investing Matthew Lawson, M.D.
2 Getting Started A true story Internal Medicine Intern Recently married Husband has Financial Planner assigned through his employer Neither of the two have any retirement savings Motivated by they previous talk they decide to open a Roth IRA and start investing They meet with his Financial Planner
3 Getting Started The Financial Planner tells them the following Get started by buying a mutual fund, I recommend Franklin Large Cap Value A Managed by Franklin Templeton, a large mutual fund company The fund invests in Large Companies based in the United States that are relatively undervalued Over the last year it has slightly outperformed the S&P 500 index (11.92% vs %) The fund has over $186 million in assets Has average fees 1.33% and 5.75% front end load Is this a good investment?
4 Topic Outline Introduction to Financial Markets and Investing Stocks & Bonds The Exchange & Indexes Mutual Funds Do Your Homework Getting Started Rules to Live By
5 Stocks & Bonds What is a stock? Simply put, a stock is a piece of paper (called a stock certificate) that represents fractional ownership of a company. If you own 100 shares of Disney Stock (symbol DIS - $34.72 on 4/13/07) Your Disney stock is worth $3,472 Disney is valued at $71.12 Billion Therefore you own about % of the company You are also entitled to a $0.31 per share dividend
6 A Stock is Born Imagine 40 years ago when Disney was planning to open a new theme park Average new park costs millions of dollars just to get started They will need money up front to: buy property draw up plans fund construction market the new park pay people to wear mouse suits
7 A Stock is Born Where to get the money to start? Companies have several options to raise cash Private loan (such as a bank loan) Issue Bonds (essentially public loans) Bonds are loans from individual investors and institutions to a company with expectation that the money will be paid back over a certain time period with a certain interest rate Issue Stock the company sells ownership shares to the public to raise capital At the initial offering the customer purchases shares of the company for a given price The company keeps the money to use and spend The investor (now part owner) is entitled to a share of the profits as well as some say as to how the company is run
8 Stocks & Bonds Stocks Represent OWNERSHIP Entitled to a share of the profits if the company is financially successful Entitled to vote at shareholder meetings (you have a voice as to how the company is run) If the company fails you get paid back last Higher risk, higher reward Bonds You are a LENDER You have loaned your money to a corporation (you are acting like a bank) You expect your money to be returned plus interest (nothing more) Not entitled to any profits If the company fails you get paid back first Lower risk, lower reward
9 Stocks & Bonds A stock is a piece of paper (called a stock certificate) that represents fractional ownership of a company. A bond is a piece of paper (a contract) that describes a loan made to a company and the expected interest payments. Stocks and bonds have value The piece of paper is actually worth something (like the title of your house) The underlying company has real products, assets, and liabilities This underlying value is the basis of stock & bond trading
10 The Market Stock certificates and bonds are traded daily at stock exchanges, like the New York Stock Exchange Stocks are traded between a buyer and a seller The underlying company is not involved Remember, the company collected money at the when the shares were issued the initial offering The stock price fluctuates throughout the day based on the principles of supply and demand
11 The Market Daily Chart
12 The Market - Exchanges All buying and selling of stock takes place on a stock exchange There are three dominant exchanges NYSE The New York Stock Exchange Oldest US exchange, trades still done face to face NASDAQ A virtual exchange with all trades done via a computerized process AMEX American Stock Exchange Companies are listed on one of these major exchanges and have a ticker symbol Ticker symbols are one to four letter abbreviations for companies Companies are generally listed on one exchange Disney DIS (NYSE) Dell Computer DELL (NASDAQ) The SEC is a governmental oversight agency Efficiency and Fairness
13 The Market - Indexes Indexes help track the price movement of groups of stocks (barometer for the market) Indexes are groupings of stocks that are tracked in an effort to determine the direction of the stock market There are hundreds of Indexes DJIA Dow Jones Industrial Average 30 largest industrial corporations historical significance S&P 500 Standard and Poor s most influential corporations in the US Wilshire 5000 Total Market Index Index of small, medium, and large US companies Russell 2000 Russell 1000 Small company index Large company index
14 Mutual Funds To recap: Stocks represent company ownership Bonds represent debt securities They trade daily on exchanges Indexes are yardsticks for measuring stock performance Mutual funds Mutual funds are collective investment pools that allow many investors to pool resources for common investment goals Investors pool money into the fund A fund manager directs the investment Each fund has an Objective and Strategy The manager buys stocks and/or bonds to meet the investment goals Thousands of mutual funds are available for you to purchase Huge variety of goals
15 Mutual Funds Mutual Funds allow a number of smaller investors, who would otherwise only be able to afford stock in a few companies to pool resource and diversify their investment.
16 Mutual Funds Types of Mutual Funds Stock Funds Asset Class (Large Cap, Mid Cap, Small Cap) Value vs. Growth Active Management vs. Index Fund Domestic vs. International Specialty funds (Technology, Healthcare, etc) Bond Funds Money Market Funds A great place to keep emergency cash There are literally thousands of mutual funds!
17 Mutual Funds - Fees Fund managers charge fees for their services Management Fee 12b-1 Fee (advertisement) Expense Ratio (management + 12b-1) Percentage of fund assets spent from all sources Sales Fee (called a load) Goes directly into the pocket of the broker Front Loaded Back Loaded
18 Mutual Funds - Fees No load funds also exist! Many mutual fund companies offer funds with no load and low expense ratios Fidelity, Vanguard, T Rowe Price, and hundreds more! Brokers will tell you the load funds are worth the extra sales fee and perform better This is not true The best predictor of performance low expenses I will never pay a load, and you shouldn t either!
19 Mutual Funds Exchange Traded Funds Exchange Traded Funds ETFs Traditional mutual funds can only be bought and sold once a day There are particular regulations regarding how their gains are taxed The last decade has seen the emergence of exchange traded funds Mutual Funds pools of money from many to achieve a goal Trade on an exchange like a stock must pay a commission Have certain tax advantages (these are lost in Roth IRA) Many new index funds are available as ETFs (low fees)
20 Recap Stocks represent company ownership Bonds debt securities (you loan money) Stocks and bond trade on exchanges Indexes are barometers of the market Mutual Funds pooled assets with common investment objectives Traditional & ETFs I m ready to buy stock, what next?
21 Do Your Homework Before you spend your hard earned cash Do I want a stock or a fund? Where can I learn about stocks? Where can I learn about funds? Are there rating services for funds? In general, you need to fully understand a stock s business model or a fund s investment goal before you invest
22 Do Your Homework The best free source of financial news Yahoo! Finance finance.yahoo.com Investment education Stock information and quotes Mutual fund information Up to date financial news Can create portfolios and watch lists I log in about 20 times a day, often from my cell phone
23 Do Your Homework
24 Do Your Homework Consider a subscription to a financial magazine, then read it cover to cover every month. Money Magazine Kiplinger s Personal Finance SmartMoney Magazine For the advanced reading Barron s Online (or in print)
25 Do Your Homework Stocks Key things to know about stocks Market Capitalization (size) Total outstanding shares x price per share Large Cap Mid Cap Small Cap > $10 B $2 - $10 B < $2 B Share Price what one share costs now P/E ratio (price to earnings ratio) (share price) / (earning per share) The lower the P/E ratio the less expensive the stock Earnings Growth Rate PEG ratio (P/E ratio) / (earnings growth) And there is a whole lot more that we will skip
26 Do Your Homework Funds Key things to know about mutual funds Management company and manager Manager s track record Investment Objective Fee Structure Expense ratio & Average Expense Ratio for that type Morningstar Rating Comparison to other funds with similar objectives Fund performance compared to an index Must be an appropriate index (not just the S&P 500)
27 Do Your Homework Funds You can get information from the fund company For example consider Fidelity Investments Fidelity offers 4,600 funds to their clients MOST are funds managed by other companies Fidelity is a Fund Supermarket They offer 1,400 No Transaction Fee funds (this means there is NO LOAD or charge to buy the fund) There are other companies that are similar fund supermarkets Vanguard T. Rowe Price E Trade They all offer free information on their mutual funds
28 Do Your Homework Stocks What does the company do? Do they make money? Or do they expect to make money soon? Is the price of the stock fair compared to how much money they make? What are their future prospects? Does the stock fit into your overall investment plan? Mutual funds What is the fund objective? What are fund fees? No load or transaction fee Low expense ratio What has past performance been? Vs. and index? How is the fund rated? Who is the manager? Does the mutual fund fit into your overall investment plan?
29 Review Stocks company ownership Bonds debt securities Mutual funds pooled resources for common investment objectives Stock Exchanges Indexes yardsticks for performance Do your homework read something before your spend you cash!
30 Getting Started How to start investing You need a Brokerage Account Savings Account save money, earn interest Checking Account use money, write checks Credit Card Account spend money and pay later Brokerage Account allows you to buy stocks, bonds, mutual funds, other investments
31 Getting Started Brokerage Accounts Brokerage Accounts Allow you to buy and sell securities May be an account fee They charge a commission to buy and sell stocks (may range from $5 to $500 per trade) May allow you to buy no transaction fee mutual funds, or buy funds with a load Regular brokerage account vs. IRA (difference in how taxes are paid)
32 Getting Started Brokerage Accounts Brokerage Accounts Open an Account Preferably in an IRA Many companies to choose from Fund the account Lump sum or recurring monthly investment Invest the money Start with a low cost mutual fund Don t pay a load!
33 Getting Started Diversify Diversification A way to protect your investments by spreading assets among different investments Company Size (Large cap, Mid cap, Small cap) Investment Style (Growth vs. Value) Domestic vs. International Stocks vs. Bonds Real Estate Diversification is critical in long term investment success and helps to reduce investment risk
34 Getting Started Historical Returns What investments, stocks or bonds, have the best potential to perform well in the future? Higher Risk Small Cap Stocks 12.2% Large Cap Stocks 10.2% Government Bonds 5.4% Treasury Bills 3.7% 10.7% Mid & Small Stocks 9.1% International Stocks 9.0% Large Cap Stocks 4.8% Long Term Bonds Inflation 2.9% Source: Ibbotson Associates ( ) Lower Risk Source: Schwab Center for Investment Research: Long Term Market Return Estimates (Jan 2007)
35 Getting Started Ready to Buy You ve opened your IRA You are ready to invest, you ve done some homework, you understand diversification now what!? I would start with a mutual fund that invests in large, U.S. based companies FFNOX Fidelity four in one fund FSLVX Fidelity large cap value fund IWB Russell 1000 index exchange traded fund IVV S&P 500 index exchange traded fund
36 Getting Started Ready to Buy Back to the initial example Planner recommends Franklin Large Cap Value A symbol FLVAX A Large Cap Value Fund Fees: Expense ratio of 1.33% Load 5.75% Ave Large Value is 1.34% Performance: 1 yr Fund: 11.92% 1 yr S&P 500: 11.83% Is the S&P 500 the best comparison for large value? 1 year return of Russell 1000 Value index was 16.83% Morning Star Rating 2 stars Is this a good investment?
37 Key concept: Getting Started Ready to Buy The majority of actively managed mutual fund underperform their respective indexes. The solution: Don t pay for underperformance Read prospectus and review prior results Compare to the most appropriate index! Consider index funds
38 Getting Started Ready to Buy After building up $5,000 to $10,000 in a large cap domestic mutual fund Diversify May add Mid cap or Small Cap fund May add international investments The decision should be based on your investment goal, time horizon, and risk tolerance
39 Rules to Live By Lifelong investing is the only reliable way to build wealth You can do it yourself if you do your homework starting with mutual funds Understand an investment before you buy Even if your financial advisor tells you it is a good buy Diversify your investments Large, Mid, Small Cap Foreign & Domestic, Growth & Value Don t overpay for underperformance Don t pay a load, look for low expenses
Mr. Kaufman Investing Notes: You want to invest in order to create wealth. Are you guaranteed to be wealthy if you invest? NO! However, if you do not save money and invest it then there is no chance for
1. 12 things you need to know about... What is a Mutual Fund? 2. A mutual fund is a pooling of investments to meet a common objective. There are mutual funds that cover almost every type investment you
Stock Market Basics What are Stocks? Stock is ownership in a publicly traded company. Stock is a claim on the company s assets and earnings. The more stock you have, the greater your claim as an owner.
Investing: Risks and Rewards Key Terms Stock Dividends Capital Gain Common Stock Preferred Stock A stock is an investment in the ownership of a corporation, represented by shares of the business Things
PFIN 12: Buying and Selling Investments 78 12-1 Researching Investments OBJECTIVES Describe the types of financial information found in magazines, newspapers, and newsletters. Describe the type of data
ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS AMEX: The acronym stands for American Stock Exchange, formerly an independent market but now part of the New York Stock Exchange; the AMEX s
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 the fund. 12b-1
Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate
Notes from the PBS video How Wall Street Works Nightly Business Report The New York Stock Exchange located on Wall Street in New York City, is traders can buy and sell stocks and bonds. Two major types
Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some
Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 PART 1 General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual
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
1 2 3 4 5 6 Say that you need to generate $4,000 per month in retirement and $1,000 will come from social security and you have no other pension. This leaves $3,000 per month, or $36,000 per year, that
Learn about exchange-traded funds Investor education Become a more knowledgeable exchange-traded funds investor In this education guide, you ll get answers to common questions about exchange-traded funds,
Client Education Learn About Exchange-Traded Funds 2 What is an ETF? 6 How do ETFs work? 12 How do ETFs compare with other investments? 2 Exchange-traded funds, or ETFs, are attracting more and more attention
Cash Balance Pension Plan 403(b)/401(k) Retirement Savings Plan Take Financial Care of Yourself Trinity Health s Retirement Program Sources of Total Retirement Income Income Sources Provided by Trinity
Disclaimer: The information provided below is for information purposes only - it is not investment advice. If you have any questions about your own personal financial situation, you should consult with
JA Take Stock In Your Future Session Two Objectives You will be able to: Identify pieces of information from a stock table (Section 2); Use that information to distinguish if the stock would be a suitable
Mutual Funds and Other Investment Companies Chapter 4 Investment Companies financial intermediaries that collect funds from individual investors and invest in a portfolio of assets shares = claims to portfolio
Saving for Retirement Your guide to getting on track. 2 It s great that you re looking ahead and thinking about retirement now. A sound plan can make all the difference in reaching your future goals. This
Using The Stock Market Game (SMG) Created by Amy Cornelisen, Garin College What is a Company? A is a person or group of persons that create a product for others to buy. The product may be something that
March 16, 2015 What is a Mutual Fund? Mutual Funds Professionally managed portfoliosmade up of stocks, bonds and other investments Pools money from many investors Securityis a tradable asset of any kind
investing mutual funds our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety concerns and significant
Q&A s Question & Answer Categories: IRA IRA Investing Misc. Mutual funds & ETFs Other investments Would it be better to contribute to my Roth or traditional IRA this year? I have $5,000 which I could contribute.
UNDERSTANDING MUTUAL FUNDS 10 % TC83038(0215)3 Cat No 64095(0215) Investing your hard earned money comes with some big decisions. So, before you invest, you need to ask yourself a simple question: What
Chapter 1 The Financial Assessment 64 P leasant S treet P hon e: ( 415) 830-52 44 Copyright 2007-2009 Harrison Lazarus Advisors, Inc. All Rights Reserved Page 1 of 15 It doesn t matter where you are in
The Young Investor s Guide To Understanding The Terms Used In Investing. The Young Investor Dictionary compliments of Integrity Mutual Funds. YOUNG INVESTOR DICTIONARY Asset Something of value. The property
Help! I Want to Be Able to Retire Someday But How? Steve Benjamin Sit Mutual Funds 3300 IDS Center 612-359-2554 firstname.lastname@example.org May 23, 2007 CAUTION! The information in this packet is provided for informational
a guide to Unit Investment Trusts A unit investment trust (UIT) is a registered investment company that buys and holds a generally fixed portfolio of stocks, bonds, or other securities. Table of Contents
Personal Finance: Another Perspective Investments 11 - Final Investment Plan Questions & Answers Updated 2013-11-04 11 Questions 1. How do I set up an investment account? 2. What is the difference between
Savings and Investing Consumers can use any money left over from purchasing goods and services toward savings or investing. Saving means putting money aside for future use. Investing is using savings to
A Accrued Interest - Interest that has been earned but not yet credited to a bond or other fixed-income investment, such as a certificate of deposit. Active Management The use of professional investment
A KIDS GUIDE TO STOCKS AND OTHER INVESTMENTS Recommended for students ages nine through 12 You can do many things with the money you will earn and save during your lifetime. For example, you can put it
EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 email@example.com www.ebnyfinancial.com Mutual Fund Basics Page 1 of 5, see disclaimer
Mutual Fund Basics A mutual fund pools the money of many investors to purchase securities. The fund s manager buys securities to pursue a stated investment strategy. By investing in the fund, you ll own
Growing Dollars and $ense 5. Selecting the Right Investments Carol O Rourke The Coalition for Debtor Education Sam McPhearson Certified Financial Planner This program is made possible by a grant from the
Because money doesn t come with instructions.sm Robert C. Eddy, CFP Margaret F. Eddy, CFP Matthew B. Showley, CFP Basic Investment Terms ANNUITY A financial product sold by financial institutions pay out
Saving and Investing Being an educated investor will help enable you to become financially sound Chapters 30 and 31 Essential Questions How do you know when to save and when to invest? What are some reasons
Sample 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
Mutual Funds 101 So you re looking to get into the investment game? Great! Mutual funds are a good investment option. But before you invest, make sure to do your research! You would never go to a car dealership,
Fundamentals of Investing 101 Tom S. Sawyer Managing Partner Sawyer Falduto Asset Management LLC 340 West Butterfield Road Suite 400 Elmhurst, Il 60126 (630) 941-8560 firstname.lastname@example.org SAWYER FALDUTO
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)
... Understanding Managed Funds Contact us If you would like to know more about how AMP Capital can help you, please visit ampcapital.com.au, or contact one of the following: Financial Planners Personal
Mutual Fund Investing Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 Mutual funds are one of the most popular ways
ETF Basics: An Introduction to ishares Exchange Traded Funds Agenda Growth of ETFs and Barclays Global Investors The engine of ETFs Unique benefits of ETFs and ishares Low cost Tax efficiency Transparency
TEACHER GUIDE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Priority Academic Student Skills Personal Financial
advisor guide Please Note: 1. Prices included in the activities are not representative of actual market data and are for instructional purposes only. Visit online financial reporting sites for real, up-to-the-minute
It s not about how much money you earn. It s about how much you save and invest. November 12, 2015 A TIAA-CREF Financial Essentials Workshop Bill Thorne TIAA-CREF Money At Work 1: Foundations of investing
Personal Risk Profile and Asset Allocation A Guide to Investing Variable Product Series Building your future with a secure partner SM Kansas City Life Insurance Company Investment basics Taking personal
Investing 101 What you will learn today Different categories of investments Choosing your investment mix Common investor pitfalls Determining your next steps 2 Asset Allocation One of Your Most Important
smart S A V E M O N E Y A N D R E T I R E T O M O R R O W INVEST Two Paths to Investing for Retirement Which one is right for you? Massachusetts Deferred Compensation SMART Plan Office of the State Treasurer
The Ultimate Guide to Buying and Selling Penny Stocks 1 Table of Contents Part One... Introduction to Penny Stocks 3 Penny Stock Basics? 3 Why Trade Penny Stocks? 4 Where Are Penny Stocks Traded? 4 Part
Stock Market for Beginners November 2013 What is a share? If you own a share, you own a portion of a company. In the same way you can see your ownership of a company as a slice of pie, cut out of a bigger
Fund Fact Sheet ExxonMobil Savings Plan ExxonMobil Stock When you buy Exxon Mobil Corporation Common Stock (ExxonMobil stock), you become an ExxonMobil shareholder and an owner of the company. As an owner
ETFs and their Place in the 401(k) Market Agenda Unique benefits of ETFs Why ETFs in 401(k)? How does it work? How are advisors using ETFs? What s next? 2 AN INTRODUCTION TO ISHARES 1 The BlackRock - ishares
SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional
Attorneys' Title Guaranty Fund, Inc. Savings Plan There are many great benefits to being a participant in the Attorneys' Title Guaranty Fund, Inc. Savings Plan. Among those benefits is exceptional customer
Overview of Your TIAA-CREF Investment Solutions SM Accounts TIAA-CREF Investment Solutions SM now offers you nine mutual funds in addition to our fixed and variable annuity accounts. TIAA-CREF Investment
Section 1: Stocks Stocks and Bonds Economics Chapter 16 Class Notes Financial Markets o and are bought and sold in a financial market. o Financial markets money from some people to other people. They bring
CHG Companies, Inc. Employee 401(k) Plan There are many great benefits to being part of the CHG Companies, Inc. Employee 401(k) Plan. Among those benefits is exceptional customer service online, by phone,
1 The Stock Market for Beginners Presenter Date What is a share? If you own a share, you own a portion of a company. In the same way you can see your ownership of a company as a slice of pie, cut out of
Mutual Funds Page 1 MUTUAL FUND BASICS CHOOSING A MUTUAL FUND REQUIRES CAREFUL THINKING ABOUT NUMEROUS FACTORS. THE MOST IMPORTANT OF THESE TO CONSIDER INCLUDE YOUR INVESTMENT OBJECTIVES, RISK TOLERANCE
REIT QUICK FACTS GUIDE FOR FINANCIAL ADVISORS Guidelines for Strategic Portfolio Diversification FINRA-Reviewed Fact Sheets on Stock Exchange-Listed Equity REITs Additional References for Advisors THERE
Learn about active and passive investing Investor education Active, passive or both: Which is right for you? Portfolios can be built using actively managed and index mutual funds either individually or
Slide 1 Investments Investment choices can be overwhelming if you don t do your homework. There s the potential for significant gain, but also the potential for significant loss. In this module, you ll
Lessons in Investing for Income UNDERSTANDING CLOSED-END FUNDS Income is one of investors most common goals but one not easily achieved, especially in today s low-yielding environment. That s why investors
FINANCIAL INSTITUTIONS AND MARKETS T Chapter Summary Chapter Web he Web Chapter provides an overview of the various financial institutions and markets that serve managers of firms and investors who invest
Unit 3: Saving & Investing Investing All About Stocks What is Stock? Stock is ownership in a company Think about this Wal-Mart began as a single-store business in Arkansas Dell began when it s founder,
ACTIVITY 4.1 READING A STOCK TABLE 1. Overview of Financial Reporting A wide variety of media outlets report on the world of stocks, mutual funds, and bonds. One excellent source is The Wall Street Journal,
Lecture 15: Final Topics on CAPM Final topics on estimating and using beta: the market risk premium putting it all together Final topics on CAPM: Examples of firm and market risk Shorting Stocks and other
1 Securities Markets: Trading Financial Resources What are the different types of securities issued by a corporation? How are securities issued in the primary market and traded in the secondary market?
Investment Options What do other high school students know about investing? We asked high school students to describe the weirdest get rich quick scheme they ve ever heard of. Someone told me that I could
The TD Bank Virtual Stock Market Game Is a free online game designed to raise financial literacy among elementary, middle and high school students. Program Guide Introduction Welcome to the TD Bank Virtual
Stock Market Definitions Alpha Alpha is a mathematical measurement of the amount of return expected from an investment. Alpha measures a fund's performance after adjusting for the fund's systematic risk
CHAPTER 16 Why Investors Purchase Mutual Funds Investing in Mutual Funds Personal Finance 7e Kapoor Dlabay Hughes Professional management. Who is the fund s manager? Managers can change. Diversification.
Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.
The essentials of investing for retirement. Fidelity has been helping people invest for retirement for more than 65 years. Some investors use our actively managed and index mutual funds. Some use our powerful
a guide to Bond Mutual Funds A bond mutual fund is an investment company that pools money from shareholders and invests primarily in a diversified portfolio of bonds. Table of Contents What Is a Bond?...
Buy, Sell or Hold?: An Overview of Investing LESSON 21: TEACHERS GUIDE Most of us take financial gambles every day. For example, we might hold off on purchasing a new video game or smart phone in hopes