Investment+Portfolio

Aim: What can you invest your money in to make it grow?
 * Making Your Money Grow**

__** Vocabulary **__ Investments sectors NASDAQ = official company of stock exchange

Types of Investments
__Bank Investments:__ __Other__ Investment portfolio consisting of:
 * Savings Accounts
 * Certificates of Deposit
 * Money Market (a checking account that offers interest)
 * Stocks
 * Bonds
 * Mutual Funds

__Stocks:__ __Bonds__: __Mutual Fund__
 * A stock is a "share"/partial ownership of a company
 * Not all companies sell shares of their company to the public
 * Companies raise many by "going public" and selling stock shares
 * Stock prices are calculated on the company's assets (what they own) and debt (what they owe)
 * Blue chip stocks are more expensive and reliable - not risky, but solid earners - Examples: Verizon, General Electric
 * Penny stocks are cheaper to buy but less reliable - volatile (go up and down dramatically) - young companies, start-up companies
 * A bond is offered by the federal government or local municipality with guaranteed interest to raise money for projects such as bridges, highways, etc.
 * A mixture of stocks, bonds and money market accounts in a variety of sectors (health, technology, energy, managed by a professional with the goal of earning money. You can buy shares of a particular mutual fund.
 * You can create an account with Fidelity.com and participate in all of the above.

__Invest in companies that:__
 * have good products
 * you believe in their mission
 * affordable stock
 * if you invest in a mutual fund, all the research is done for you by the professional fund manager

RULES OF THUMB

 * Don't invest money that you CANNOT risk losing --- look into bank savings instead
 * Diversify - keep your portfolio balanced.
 * Invest more conservatively (more bonds instead of stocks) when you are within 5 years of retiring so you don't risk losing your money since stock tend to be more changeable.


 * Go To the INVESTMENT PORTFOLIO ASSIGNMENT**