# ACTIVITY 8.1 A MARGINAL PLAY

Save this PDF as:

Size: px
Start display at page:

## Transcription

3 LESSON 8 BUYING ON MARGIN AND SELLING SHORT ACTIVITY 8.2 MARGIN PROBLEMS Names The amount of collateral that the investor must deposit to open a margin account for buying stock is called the initial margin requirement. The initial margin requirement must be 50 percent (one half) of the total value of the stocks being purchased or sold short. For example: to make a \$10,000 stock purchase on margin, the investor must put \$5,000 worth of collateral into the margin account. The investor s actual ownership in the account is called the equity. It is determined by subtracting the investor s debt (what is owed to the brokerage firm) from the value of the investor s stock (what is owned). Here is a sample margin account: Current value of stock purchased \$10,000 Debt (money owed to broker) \$5,000 Equity (amount owned by investor) \$5,000 Suppose the price of the stock increases. The market value of the stock will rise, and so will the investor s equity. Current value of stock purchased \$11,000 Debt (money owed to broker) \$5,000 Equity (amount owned by investor) \$6,000 Suppose the price of the stock falls. The market value of the stock will fall, and so will the investor s equity. Current value of stock purchased \$9,000 Debt (money owed to broker) \$5,000 Equity (amount owned by investor) \$4,000 Many stock market games and simulations allow students to buy stocks on margin. In these cases, the internet site will act as your broker and lend you a portion of the money you need to buy more stock. Since the initial margin requirement in most games is 50 percent, you can typically borrow up to one-half of the value of the stocks being purchased or sold short. In many games this means that you can buy approximately \$200,000 worth of stock (less the broker s fees). \$100,000 will come from your beginning account balance, and the game or simulation will lend you \$100,000. In this case, you have borrowed the greatest amount possible because of the 50 percent margin requirement (\$200,000 worth of stock x 50 percent = \$100,000 loan). The game or simulation will typically hold your \$200,000 worth of stock as collateral for the loan. Now see if you understand all of this by solving the following problems. 130 LEARNING, EARNING, AND INVESTING FOR A NEW GENERATION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

4 BUYING ON MARGIN AND SELLING SHORT LESSON 8 Margin Worksheet Directions: Read each situation below and fill in the blanks. Situation 1 Mrs. Smith buys 100 shares of Coca-Cola stock on margin at \$30 per share. a. The total market value of the stock Mrs. Smith buys is \$ b. The amount of money that Mrs. Smith must pay for this purchase (her initial margin requirement) is \$ c. The maximum amount of money that the brokerage firm could lend Mrs. Smith (her debt) is \$ d. Mrs. Smith s equity is \$ Situation 2 The value of Mrs. Smith s 100 shares of Coca-Cola rises to \$40 per share. Calculate the following: a. The market value of Coca-Cola shares in Mrs. Smith s account is now \$ b. The amount of money she owes the brokerage firm (her debt) \$ c. Mrs. Smith s equity is \$ Situation 3 The value of Mrs. Smith s 100 shares of Coca-Cola falls to \$20 per share. Calculate the following: a. The market value of Coca-Cola shares in Mrs. Smith s account is now \$ b. The amount of money she owes the brokerage firm (her debt) is \$ c. Mrs. Smith s equity is \$ LEARNING, EARNING, AND INVESTING FOR A NEW GENERATION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY 131

7 LESSON 8 BUYING ON MARGIN AND SELLING SHORT The margin account is required by the Federal Reserve. It is a way of protecting brokerage firms. If the price of the stock sold short goes up too much, too fast, the short seller may not be able to buy it back to return it to the brokerage company. Thank you so much for your time. I ll go home and do some research and call you next week. Yes, thanks. I learned a lot, too. But I don t think short selling is for me. I ll stick to the regular way we ve been buying and selling stock. 134 LEARNING, EARNING, AND INVESTING FOR A NEW GENERATION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

8 BUYING ON MARGIN AND SELLING SHORT LESSON 8 ACTIVITY 8.4 MARGIN PROBLEMS Name Directions: Read each situation below and fill in the blanks. Be sure to include the cost of the broker s fee in your calculations. The broker s fee is 2 percent for the short sale and 2 percent for the short cover. Show your work in the space provided. Situation 1 A stock owner sells short 200 shares of stock at \$50 per share. He buys them back for replacement (short cover) at \$40 per share. Did he make a gain or loss? How much? Situation 2 A stock owner sells short 100 shares of XYZ Corporation at \$20 per share and has to short cover them at \$40. Did he make a gain or loss? How much? Situation 3 A stock owner sells short 100 shares of Apple Pie Corporation at \$50 per share. The initial margin requirement is 50 percent. How much money must be deposited in the margin account? LEARNING, EARNING, AND INVESTING FOR A NEW GENERATION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY 135

### Margin Trading. A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion

A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion 2 An investor who purchases securities may pay for the securities in full, from his own resources,

### StocksQuest Lesson #3: Selling Short and Buying on Margin

StocksQuest Lesson #3: Selling Short and Buying on Margin Selling Short ~ Selling short occurs when investors sell stocks they don t actually own, they do this by borrowing stocks instead of buying stocks.

### ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS

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

### Understanding Margin and Its Risks

Understanding Margin and Its Risks www.siebertnet.com Before opening a margin account, you should have a clear understanding of the basic facts about margin and the risks of trading securities on margin.

### THE STOCK MARKET GAME GLOSSARY

THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The

### Chapter 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

### Homework Margin Purchases. Dr. Patrick Toche

Homework Margin Purchases Dr. Patrick Toche A dagger indicates a possibly more challenging question. Maintenance Margin 1. You are bullish on Telecom stock. The current market price is \$50 per share, and

### Short Sale. Dr. Patrick Toche

Short Sale Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be followed closely. Other

### WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

### Margin Requirements & Margin Calls

Margin Requirements & Margin Calls Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be

### 2016 2010 South-Western, Cengage Learning

Chapter 2 Investing in Stocks 2.1 Evaluating Stocks 2.2 Buying and Selling Stocks Lesson 2.1 Evaluating Stocks Learning Objectives LO 1-1 Describe features of stock and types of stocks. LO 1-2 Explain

### Investing in unlisted property schemes?

Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

### How to Trade Almost Any Asset in the World from a Single Account Using CFDs

How to Trade Almost Any Asset in the World from a Single Account Using CFDs How to Trade Almost Any Asset in the World from a Single Account Using CFDs Shae Russell, Editor INTRODUCTION TO TRADING CFDS

### Homework Margin Purchases. Dr. Patrick Toche

Homework Margin Purchases Dr. Patrick Toche A dagger indicates a possibly more challenging question. Maintenance Margin 1. You are bullish on Telecom stock. The current market price is \$50 per share, and

### Chapter. Investing in Stocks. 12.1 Evaluating Stocks 12.2 Buying and Selling Stock. 2010 South-Western, Cengage Learning

Chapter 12 Investing in Stocks 12.1 Evaluating Stocks 12.2 Buying and Selling Stock 2010 South-Western, Cengage Learning Lesson 12.1 Evaluating Stocks GOALS What are the features of a stock? What are the

### Frequently Asked Questions

Frequently Asked Questions 1. What is a reverse mortgage? 2. How does a reverse mortgage differ from a home equity loan? 3. What are the advantages of a reverse mortgage? 4. How much money can I get? 5.

### Stock Market for Beginners November 2013

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

### Are you in debt? Do you need to sell your house fast? Then Read on to find out How To Get Out Of Debt Now!

Are you in debt? Do you need to sell your house fast? Then Read on to find out How To Get Out Of Debt Now! When you miss mortgage payments you can find yourself in deep trouble. The mortgage lender could

### Club Accounts. 2011 Question 6.

Club Accounts. 2011 Question 6. Anyone familiar with Farm Accounts or Service Firms (notes for both topics are back on the webpage you found this on), will have no trouble with Club Accounts. Essentially

### Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money.

TEACHER GUIDE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Priority Academic Student Skills

### Chapter 17 Corporate Capital Structure Foundations (Sections 17.1 and 17.2. Skim section 17.3.)

Chapter 17 Corporate Capital Structure Foundations (Sections 17.1 and 17.2. Skim section 17.3.) The primary focus of the next two chapters will be to examine the debt/equity choice by firms. In particular,

### Answers to Concepts in Review

Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the

### VISUAL 1 TERMS OF MODERN FINANCIAL MARKETS

VISUAL 1 TERMS OF MODERN FINANCIAL MARKETS Instruments Asset-backed security Credit default swap Bond Common stock Mortgage-backed security Mutual fund Option Futures contract Subprime mortgage Institutions

### Margin Requirements & Margin Calls

Margin Requirements & Margin Calls Dr. Patrick Toche References : Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw- Hill Irwin. Chapter 3 of the Bodie-Kane-Marcus textbook will be

### Equity Release Guide. www.seniorissues.co.uk

Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY

### JA Take Stock In Your Future Session One

JA Take Stock In Your Future Session One Objectives You will be able to: Identify why the stock market is an integral part of our free enterprise system and why corporations issue stock (Section 2); Accurately

### A stock is a share in the ownership of a company. Stock represents a claim on the company s assets and earnings.

Stock Market Basics What are stocks? A stock is a share in the ownership of a company. Stock represents a claim on the company s assets and earnings. As an owner (shareholder), you are entitled to your

### Outstanding mortgage balance

Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

### The Stock Market for Beginners. Presenter Date

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

### Class 4: Option Trading - Part 1. 1. Assessing Risks and Rewards. Foundations of Stocks and Options Class 4: Option Trading - Part 1.

Today s Class Assessing the risks in stocks Renting your stock Insuring your stock How Options work Class 4: Option Trading - Part 1 1. Assessing Risks and Rewards Benefits of Buying Stock (Long) You own

### Remember the Interest

STUDENT MODULE 7.1 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. Remember the Interest Mom, it is not fair. If Bill can

### How Banks Create Money: The Balance Sheets Contents

How Banks Create Money: The Balance Sheets Contents 1. The different types of money 2. A quick word on balance sheets 3. How central banks create money 1. Central bank reserves 2. Cash 4. How commercial

### Understanding A Firm s Financial Statements

CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,

### Saving and Investing. Chapter 11 Section Main Menu

Saving and Investing How does investing contribute to the free enterprise system? How does the financial system bring together savers and borrowers? How do financial intermediaries link savers and borrowers?

### Goals: What are you saving your money for college, a car, retirement? Decide what you want and how much you will need for each item.

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

### Life Insurance Made Easy The basics on buying Life Insurance

Life Insurance Made Easy The basics on buying Life Insurance Introduction Hi There! Before you begin reading, I d like to take the time out to truly thank you for downloading this guide. There is A LOT

### Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

### JA Take Stock In Your Future Session Two

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

### Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

usbank.com/student financialgenius.usbank.com Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest Loan Lessons The Low-Down on Loans, Interest

### Foreclosure Prevention Guide

Foreclosure Prevention Guide 8 Ways to Stop Your Foreclosure in Today s Challenging Economy About Foreclosure Foreclosure begins when a Homeowner is unable to make their mortgage payments on the scheduled

### Bodie, Kane, Marcus, Perrakis and Ryan, Chapter 3

Bodie, Kane, Marcus, Perrakis and Ryan, Chapter 3 Answers to Selected Problems 1 FBN Inc has just sold 100,000 shares in an initial public offering The underwriter s explicit fees were \$70,000 The offering

### PERSONAL BANKING White Paper Series. Using Your Home Equity Wisely

White Paper Series Using Your Home Equity Wisely October 2013 If certain television commercials can be believed, your home s equity is the key to achieving all your wildest dreams. Simply tap in to that

### Chapter. 2 Buying and. Selling Securities. McGraw-Hill/Irwin. Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 2 Buying and Selling Securities McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Buying and Selling Securities Don t Gamble! Take all your savings and buy

Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

### Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest The Low-Down on Loans, Interest and Keeping Your Head Above Water usbank.com/financialeducation

### INVESTMENT TRANSLATED INTO HUMAN WORDS

INVESTMENT JARGON TRANSLATED INTO HUMAN WORDS Hi, The world of finance loves jargon, but it s overly confusing. Let s clear the air. Here s a concise walk-through of terms that are common, but often not

### Short Selling Tutorial

Short Selling Tutorial http://www.investopedia.com/university/shortselling/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp

### 2 Buying and Selling Securities

Chapter 2 2 Buying and Selling Securities Getting Started Brokerage Accounts Cash Accounts Margin Accounts Short Sales Investor Objectives, Constraints, and Strategies 2-1 McGraw-Hill/Irwin Copyright 2005

### Investment Analysis (FIN 383) Fall 2009. Homework 2

Investment Analysis (FIN 383) Fall 2009 Homework 2 Instructions: please read carefully You should show your work how to get the answer for each calculation question to get full credit The due date is Thu,

### Margin Trading Tutorial

Margin Trading Tutorial http://www.investopedia.com/university/margin/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp

### Jade Education Award Story: Smart Loan Strategies Page 1. This is Jade.

Jade Education Award Story: Smart Loan Strategies Page 1 This is Jade. Jade borrowed a lot of money to pay for her two degrees. She consolidated several smaller loans into one big one. She wants to use

### INVESTMENT DICTIONARY

INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

### Budgeting for Home Ownership

A HOME FOR YOUR FAMILY 7 Budgeting for Home Ownership Perhaps you are just beginning to think about buying a home sometime in the future. Or maybe you have already found a home you would like to buy. Whether

### Equity release using your home to get a cash sum

Equity release using your home to get a cash sum for independent information About us We are an independent watchdog set up by the Government to: regulate firms that provide financial services; and help

### Investments I HW 2 - Solutions

Investments I HW 2 - Solutions Sailesh Tiwari 26 September, 2008 Problem 1 (BKM Ch3. Ques.3) (a) The Trader buys 300 Internet Dreams shares at \$40 per share. Total cost of the shares is 300 \$40 = \$12000.

### Stock Market Game Test

Stock Market Game Test A test of basic economic concepts and institutions related to saving, investing, risk, the stock market, and productivity 1. A personal investment such as purchasing stocks or corporate

### USA Reverse. Learn the Facts about Reverse Mortgages. Danny Glover - Human Rights Activist

Learn the Facts about Reverse Mortgages Danny Glover - Human Rights Activist Single-purpose Reverse Mortgages Single-purpose reverse mortgages are the least expensive option. They re offered by some state

### Double-Entry Bookkeeping: Assets and Liabilities

Double-Entry Bookkeeping: Assets and Liabilities The purpose of this chapter is to introduce the fundamentals of double-entry bookkeeping and its role in accounting for business. The objectives of accounting

### Excess Equity and Buying Power. Non-Restricted Accounts. Minimum Maintenance Requirement. NYSE/NASD Minimum Credit Requirement

Margins Excess Equity and Buying Power Restricted Accounts Same-Day Substitution Non-Restricted Accounts Minimum Maintenance Requirement NYSE/NASD Minimum Credit Requirement The Short Sale Credit Balance

### How Securities Are Traded

How Securities Are Traded What is this project about? You will learn how securities are traded on exchanges, particularly how to conduct margin trades, short sales, and submit limit orders. What case do

### INTERACT WITH CAPITOL FEDERAL

TALK with an Associate in Capitol Federal s Customer Service Center 888-8CAPFED. EMAIL your questions to Capitol Federal securely online at capfed.com/contact. VISIT any one of Capitol Federal s convenient

### Combined Business Loan

Combined Business Loan Terms and Conditions This document sets out your loan or facility s terms and conditions In this document we ve explained the terms and conditions applying to your ANZ Business Loan

### Types of Stock. Common Stock most common form of stock. Preferred Stock. Companies may customize other classes of stock.

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.

### A GUIDE TO HOME EQUITY LINES OF CREDIT. Call or visit one of our offices today to see what products in this guide we have to offer you!

A GUIDE TO HOME EQUITY LINES OF CREDIT Call or visit one of our offices today to see what products in this guide we have to offer you! TABLE OF CONTENTS Introduction What is a home equity line of credit

### Financial Ratio Cheatsheet MyAccountingCourse.com PDF

Financial Ratio Cheatsheet MyAccountingCourse.com PDF Table of contents Liquidity Ratios Solvency Ratios Efficiency Ratios Profitability Ratios Market Prospect Ratios Coverage Ratios CPA Exam Ratios to

### Five Things To Know About Shares

Introduction Trading in shares has become an integral part of people s lives. However, the complex world of shares, bonds and mutual funds can be intimidating for many who still do not know what they are,

### NAIC Buyer s Guide for Fixed Deferred Annuities

NAIC Buyer s Guide for Fixed Deferred Annuities It s important that you understand how annuities can be different from each other so you can choose the type of annuity that s best for you. The purpose

### Readiness Activity. (An activity to be done before viewing the program)

Knowledge Unlimited NEWS Matters The Stock Market: What Goes Up...? Vol. 3 No. 2 About NewsMatters The Stock Market: What Goes Up...? is one in a series of NewsMatters programs. Each 15-20 minute program

### Investments GUIDE TO FUND RISKS

Investments GUIDE TO FUND RISKS CONTENTS Making sense of risk 3 General risks 5 Fund specific risks 6 Useful definitions 9 2 MAKING SENSE OF RISK Understanding all the risks involved when selecting an

### Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

### RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding

### Ordinary Shares Presenter Date

1 Ordinary Shares Presenter Date Contents What is a share? What is an ordinary shares? What are dividends? What is the share price? The benefits of ordinary shares Some things to consider when investing

### A KIDS GUIDE TO STOCKS AND OTHER INVESTMENTS

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

### Money Math for Teens. Dividend-Paying Stocks

Money Math for Teens Dividend-Paying Stocks This Money Math for Teens lesson is part of a series created by Generation Money, a multimedia financial literacy initiative of the FINRA Investor Education

### After Bankruptcy: What You Need to Know

After Bankruptcy: What You Need to Know The Path to Creditworthiness Bankruptcy offers some resolution to your financial worries. However, it also carries negative consequences and major responsibilities

### Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

### Virtual Stock Market Game Glossary

Virtual Stock Market Game Glossary American Stock Exchange-AMEX An open auction market similar to the NYSE where buyers and sellers compete in a centralized marketplace. The AMEX typically lists small

### LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

### A KIDS GUIDE TO STOCKS AND OTHER INVESTMENTS

A KIDS GUIDE TO STOCKS AND OTHER INVESTMENTS Recommended for students ages nine through 12 ou can do many things with the money you will earn and save during your lifetime. For example, you can put it

### The Concept of Credit

The Concept of Credit { http://youth.macu.com } Mountain America Credit Union knows that it s never too early to start learning critical money management skills. That s why we ve put this information together

### Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer

### Chapter 3 How to analyse a balance sheet

Chapter 3 How to analyse a balance sheet In the previous chapter we looked at how a balance sheet was put together and the numbers that go into it. In this chapter, we are going to take all those numbers

### The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid

The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid The foreclosure process is perplexing, even for those experienced in real estate. Real estate agents, attorneys, mortgage

### How CFD Trading Works?

What are CFD s In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference

### Yes, you can. There are no assurances that a stock will increase in value. Several factors can affect the value of your stocks:

EBNY Financial, LLC Kevin Kautzmann, CFP Certified Financial Planner 80 Fifth Avenue #1403 New York, NY 212-269-2625 kevin@ebnyfinancial.com www.ebnyfinancial.com Investing in Stocks Page 1 of 5, see disclaimer

### Home Loan. This document sets out your loan s terms and conditions. Some key information about your loan. Terms and Conditions

Home Loan Terms and Conditions This document sets out your loan s terms and conditions In this document we ve explained the terms and conditions applying to your ANZ Home Loan. It includes key information

### Introduction 4. What is Refinancing? 5. Changing Home Loans 5 Changing Needs 6 Identifying Better Opportunities 6 Additional Home Loan Features 6

Contents Introduction 4 What is Refinancing? 5 Changing Home Loans 5 Changing Needs 6 Identifying Better Opportunities 6 Additional Home Loan Features 6 What are the Advantages of Refinancing? 7 1. Consolidating

### Is A Reverse Mortgage Right for You?

Is A Reverse Mortgage Right for You? NewRetirement s Guide to Reverse Mortgages www.newretirement.com (877) 394-1305 Table of Contents What is a Reverse Mortgage? Are You Eligible For a Reverse Mortgage?

### Investing Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (HA)

How Do Americans Invest Their Savings? (HA) 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

### The Young Investor s Guide To Understanding The Terms Used In Investing.

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

### 7 Facts You Need to Know About Reverse Mortgages...

SPECIAL REPORT 7 Facts You Need to Know About Reverse Mortgages... By Quinn Berry 7 Facts You Need to Know About Reverse Mortgages... to help you enjoy a comfortable, worry-free retirement! Chances are

### Part 10. Small Business Finance and IPOs

Part 10. Small Business Finance and IPOs In the last section, we looked at how large corporations raised money. In this section, we will examine some of the financing issues facing small and start-up businesses.

### For more information on plain English go to www.simplyput.ie. Transactions Involving Directors - A Quick Guide

For more information on plain English go to www.simplyput.ie Transactions Involving Directors - A Quick Guide Transactions Involving Directors A Quick Guide Contents About this booklet 2 Who do the rules

### Your retirement could have even more going for it

Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

### Getting a Difficult Business Loan Is Easy

Getting a Difficult Business Loan Is Easy Learn How Easy IT Is To Get a Business Loan Even IF You Have Bad Credit And Have Been Turned Down Before Every Winner Has A Coach! John P Fazzio, Your Coach www.winning-advantage.com

### Strategies in Options Trading By: Sarah Karfunkel

Strategies in Options Trading By: Sarah Karfunkel Covered Call Writing: I nvestors use two strategies involving stock options to offset risk: (1) covered call writing and (2) protective puts. The strategy

### INVESTING IN DEBENTURES?

INVESTING IN DEBENTURES? Independent guide for investors reading a prospectus for unlisted debentures This guide is for you, whether you re an experienced investor or just starting out. About ASIC The

### Chapter 16: Squeezing the Last Drop Additional Material

Chapter 16: Squeezing the Last Drop Additional Material In my original manuscript, I had a more extensive discussion on reverse mortgages. Here s the full version. What about reverse mortgages? These are