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Investing Your Money
Transcript of Investing Your Money
- Robert G. Allen What is an investment? An investment is money you put into a financial instrument or tangible item for the purpose of increasing your money. What are some different ways you can invest your money? In this class we will discuss: bonds, stocks, mutual funds, savings account, and tangible items (house, classic cars, coin collections, etc.) Vocab Stock- A share of ownership in a company Bond- An IOU issued by one of 3 institutions Mutual Fund- A large stock portfolio where many investors have pooled their money. Interest- The percent paid by banks or other financial institutions on monetary deposits or the money you pay to borrow money from the bank. Commission- Fee paid to a broker for handling a stock transaction. Stock Broker- The person who handles the transaction between you and the stock market. Diversification- Splitting investments into different areas to avoid losing all of your money in one area. What types of investments will be discussed in class? Let's start with stocks Bonds Why it can be important to start saving and investing at a young age!