Stocks. Economics Mrs. Huff. TARGET!. Students will learn to analyze and evaluate stocks using economic data. . What is "Financial Literacy"?. The ability of an individual to make appropriate decisions in managing their personal finances. Saving vs. Investing Stocks vs. Funds vs. Bonds
Highest Risk ~
Highest Potential for Return or Loss
Stocks & Real Estate
Certificates of Deposit
Lowest Risk ~
Lowest Potential for
Return or Loss
Purchasers are OWEES.
(Company owes them $$.)
Company must pay this back after a specified period of time.
If the stock decreases in value, (and you sell), you LOSE!
Company goes bankrupt, you LOSE!
Just another reason to root “Go Pack!”
Hold stock more than 1 year before selling.
Taxed at federal rate of 15% and then your state rate.
What is this?
How does this work?
Investor A “borrows” stock from XYZ corporation at $10 a share. A immediately sells the stock.
When the stock drops in price, say to $5, A buys it back and returns it to Investor B.
Technically A has bought it at $5 and sold it at $10, thereby making money.
Diversify – and invest for the LONG RUN.