what is stock anyway

2.04 Investing assignment

Step 1)   Spin the wheel to see how much money you have to invest. 

What were your results?   _________________________________________________________

Step 2) Fill out investing chart. These websites can help you msn.money, Yahoo Finance, Bankrate, investopedia, Market Watch Getting started.

Type of Investment Descriptionóexplain what it is and how it works. Level of Risk and Potential Returnóexplain. (How likely are you to lose your money vs make money) Real-life example of this investment (name or company) Minimum investment amount or time? Easy to start or stop investment? Discuss.

CD

IRA Individual Retirement Account (IRA)óa portion of a person’s income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities. Employers might contribute to the account as a benefit to employees.

MMA

Stocks Usually you can’t just buy one stockómust invest a minimum dollar amount. For a large company like McDonald’s, the high start-up cost deters personal investors ($50,000 in 2012).

Bonds 30-Year Treasury BondóU.S. Department of the Treasury

Mutual Funds

Futures High (Aggressive)óHave a potentially large return relative to other investments but also are considered the riskiest.

Traditional Bank Account

Step 3) Essay 

Choose three investment options from the chart for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions:

Explain how you obtained the money for investment. (from the spinner activity)

Why did you choose these three options? 

How do your choices reflect your tolerance for risk?

How do you plan to divide your money between the three investment options you chose? Be sure to include the following terms in your explanation: diversification, risk, rate of return, interest rate.

Write our paragraph belowÖ

Save your file as ìYOURNAME204î and then upload to 2.04

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