| A | B |
|---|
| two types of investment goals | short and long term |
| two things that help you reach your goal | write them down & talk about them |
| list some super saver tips | save allowance, invest, buy used CDs, get parents to match savings, smart shopping, earn more by doing extra jobs, make gifts for friends or family to save |
| two reasons why you should invest | to stay ahead of inflation and to reach your financial goals |
| what is inflation | increasing prices of goods |
| if you own shares of a company you are called a... | shareholder |
| after expenses are paid by a company, the leftover money is called... | profit |
| if a company pays their shareholders money because of their profit it is called a... | dividend |
| if you buy a stock and sell it for more than what you bought it for it is a... | gain |
| if you sell a stock at less than what you bought it for it is called a... | loss |
| small supply and big demand causes the price of an item to... | increase or go up |
| Big supply and small demand cause the price of an item to... | decrease or go down |
| the amount of an item that is available to us is called... | supply |
| the amount of people who want to buy an item is called... | demand |
| Name two ways stocks are traded | Exchanges like New York Stock Exchange or Electronically using computers (like NASDAQ) |
| What is a way of measuring the value of a combination of stocks (eg., DOW) | Index |
| List ways you can find the price of a stock? | Newspaper, TV News, Internet, Broker |
| What does CD stand for? | Certificate of Deposit |
| What is interest? | the cost of borrowing money |
| What were the 4 interest investments that were discussed in class | savings account, money market account, CD's, Bonds |
| When you buy a bond what are you doing with your money? | Lending to a company to use |
| If you buy a 12 month CD, how long do you have to leave it in the band? | 12 months |
| If you buy a 10 year bond, how long will it be before you get the money | 10 years |
| Are bonds guaranteed to be paid back to you? | No |
| Are you guaranteed to be paid interest on bonds? | No |
| Does a bank guarantee to pay you interest on a savings accoung | Yes |
| What is a mutual fund | many people buy shares that are managed by a fund manager |
