Business

Describe some reasons why adults save.

• Retire, housing, bills

• toys

• coloring books

• Stuffed animals

Define interest, and explain how interest works.

• When you earn interest on the money you’ve saved and on the interest you earn along the way.

• Increases the ratio of the capital stock to the given labor supply and initially raises the growth rate of output per capita.

• Monetary charge for borrowing money. The price you pay to borrow money or the return earned on an investment.

• Provides a way to cover costs to right the situation and keep business moving forward unimpeded.

Explain how real estate can be an investment.

• Provides a way to cover costs to right the situation.

• Involves the purchase, management and sale or rental of real estate for profit.

• You buy it

• Increases ratio of capital state.

Define commodities, and explain the different types of commodities.

• Stuff you buy

• dog, cat, pet

• Something to accommodate to

• Raw material: gold, metal, livestock, agriculture, coal, lumber

Explain how collectibles can be an investment. Give examples of 4 different types of collectible investments.

• Items worth far more than their original sale price and are considered alternative investments. (Toys, cars, coins, sports memorabilia.)

• Toys

• Things you buy that are expensive

Describe and understand the difference between the two types of stocks.

• Common stock (not a risk)

  Preferred stock (risk)

• Common stock (needed)

  Preferred stock (not needed)

• Common stock (more often bought)

  Preferred stock (preferred by the people)

• Common stock (usually has voting rights)

  Preferred stock (usually non-votes, but pays higher dividends)

Explain the four steps in How to Select a Stock:

• 1. 1. Choose a broker and fund your account

  2. 2. Do your research on trends

  3. 3. Calculate how many shares you want

  4. 4. Place your trade

• 1. 1. Place your trade

  2. 2. Calculate how many shares you want

  3. 3. Do your research on trends

  4. 4. Choose a broker and fund your account

• 1. 1. Choose a broker and fund your account

  2. 2. Calculate how many shares you want

  3. Do your research on trends

  4. 4. Place your trade

• 1. 1. Do your research on trends

  2. 2. Choose a broker and fund your account

  3. 3. Calculate how many shares you want

  4. 4. Place your trade

Define and understand stock broker.

• Breaks stocks

• Securities bought and sold

• Tradable financial asset

• Buys and sells securities on a sock exchange on behalf of clients

Define and understand securities

• Securities bought and sold

• Tradeable financial asset

• Amount of which something can be sold on a given market

• Buys on a stock exchange

Define and understand stock exchange

• Buys and sells securities

• Amount for which something can be sold on a given market

• Tradeable financial asset

• Securities are bought and sold