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INVESTMENTS

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INVESTMENTS Powered By Docstoc
					           INVESTMENTS
Strategies, Retirement, Stock Market…
INVESTMENT


Investing—putting money
 to work so that it makes
 even more money over
 time.
INVESTMENT CHARACTERISTICS

• Return—income an investment
  produces
• Liquidity—the ease with which
  assets can be converted to cash
• Volatility—the degree to which an
  investment’s return or value may
  change
• Risk—possibility of variation in the
  return on investment
PRINCIPLES OF INVESTING

• Identify Objectives—
  purpose/goals

• Focus on Strategy
        *income
        *growth
        *tax reduction

• Diversify Investments
LEARNING ABOUT INVESTING

• Reliable media sources

• Courses in financial planning

• Investment clubs

• Professional advisors
RETIREMENT PLANNING

• Social Security
• Pension Plans
    •Defined-benefit plan
    •Defined-contribution plan
• 401K
• Others
PERSONAL INVESTMENTS

• Individual Retirement
  Accounts
    •Traditional IRA
    •Roth IRA
• Keogh Plans
TAKING CHARGE




• Start Early

• Review Your Plan Regularly
STOCK MARKET
• Stock—ownership interest in
  corporation

• Shares—individual units of
  ownership

• Shareholders—part-owners of
  the corporation
STOCK TRADING
• Stock Market—auction of sorts

• Stock Exchange—trading floor
    • NYSE-New York Stock Exchange
    • AMEX-American Stock Exchange


• Nasdaq—global electronic network

• SEC—Securities and Exchange
  Commission
RETURNS ON STOCKS
• Dividend—a payment to
  shareholders that represents a
  portion of the company’s net
  profits

• Capital gains and losses—buy low,
  sell high=capital gain or buy high,
  sell low=capital loss
OTHER WAYS TO BUY STOCK

• 401(K)—defined contribution plan
  employee contributes on a pre-tax
  basis which might be invested in stock

• ESOP—Employee Stock Ownership Plan

• Mutual Funds—a group of investments
  held in common by many individual
  investors
RISK OF OWNING STOCK

• The Company’s Health

• Industry Trends

• Economic Factors

• National and World Events

				
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posted:3/20/2008
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