1 / 18

Stock Market Investing: Building Your Financial Future with Stocks and Funds

Explore the fundamentals of stock market investing and building wealth through stocks, mutual funds, and retirement accounts. Understand the risks and rewards, different types of stocks like income, blue-chip, and growth, and how to buy and sell stocks through brokers or online platforms. Learn about mutual funds, retirement accounts like IRAs and 401(k)s, and how to make informed investment decisions for a secure financial future.

blenda
Download Presentation

Stock Market Investing: Building Your Financial Future with Stocks and Funds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding the Words of Wall Street: Putting your money to work

  2. Investment Pyramid More Volatile/Speculative Investments and decreased liquidity Increasing Risk = Increased chance of larger rate of return. Collectibles Property Stocks More Conservative Investments and increased liquidity IRA’s/401k’s Corporate Bonds Mutual Funds Government Bonds, Certificates of Deposit (CD’s) Savings/checking accounts Investments on bottom of pyramid = low risk & low rate of return!

  3. So What is a Stock? Stocks: • Ownership interest in a company • When you own stock/shares in a company essentially you own part of the company.

  4. Why buy a stock? You will have… • Possibility to sell shares at a higher price later. (buy low, sell high) • May receive dividends (profit or AKA earnings) • Possible claim on assets • Voting rights

  5. Preferred vs Common Stock • Preferred Stock: • Pays a fixed dividend • Common Stock: • Voting rights • More Volatile

  6. Where Are Stocks Bought & Sold?

  7. Major Stock Markets • New York Stock Exchange (NYSE) • Oldest, largest exchange • NASDAQ • Pure Electronic Exchange Video

  8. What affects the Price of a Stock? • Fundamentally: • Supply and Demand • Demand is effected by… • Company Health / Outlook • Industry Trends • Economy • National & World Events Confidence and Fear

  9. Advantages vs. Disadvantages • Advantages: • Medium to High return potential • Historically 10%-12% return • Highly Liquid • Disadvantage: • Medium to High risk • Highly volatile

  10. Buying Stocks Broker • A licensed professional that buys and sell stocks for investors. • Example: Schwab, Edward Jones

  11. Buying Stocks Online • A website that allows users to buy and sell stocks. • Example: Ameritrade

  12. Income Stocks • Older, stable companies • High dividends, low growth • Utility companies: ComEd • Low Risk/Low Return • Good for older investors

  13. Blue-Chip Stocks • Well Known, reliable companies • Small but regular dividends • Steady growth • GE, Microsoft, Walmart • Medium risk / Medium Return • Good for long term investors who don’t want to much risk

  14. Growth Stocks • Young, entrepreneurial companies • High Growth Potential • Example: Tech start-ups • High Risk / High Return • Good for risk takers who could afford a loss.

  15. Mutual Funds • A collection of investments managed by professionals. • Traded just like a stock. • Pros: • Easy way to diversify • Professionally managed • Cons: • Fees

  16. Types of Funds

  17. Retirement Accounts IRA’s • An investing plan with special tax benefits 401K Plan • A tax differed retirement plan set-up by your employer. • Employer may match contributions

More Related