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02.04 WHAT IS STOCK ANYWAY?
Transcript of 02.04 WHAT IS STOCK ANYWAY?
T-Bond: Safer than a regular bond
CD: You will earn more many than in a traditional savings.
Stock: Part ownership in a company.
Risk of Losing Money
T-Bond: Moderate. If Component loses money so do you.
CD: Very Low Risk.
Stock: A high risk you could lose all of your money.
Examples where you could invest:
Stock: Apple Company
INVESTMENTS AND HOW IT WORKS:
Issued by the U.S. Treasury
Safe money market investments backed by the US Government
Charges money to take out money early.
Offer higher interest rate than savings account
Has a maturity date.
Makes most money over time
Buying a share in a company