What Is Stock Anyway
02.04 What is Stock, Anyway—Assignment
Investing Basics
Type of Investment
Description – explain what it is and how it works
Level of Risk and Potential Return – explain.
Real-life example of this investment (name or company)
Minimum investment amount or time?
Easy to start or stop investment?
Discuss.
CD
Certificate of Deposit is a savings note issued by a bank to a depositor who places funds in saving for a set period.
Low Risk because of the low return.
CDs are generally issued by commercial banks and are insured by the FDIC.
Bank of America
CDs require a minimum amount of money to invest. CDs are safe ways to save money but it is hard to get the money out. Bank will charge a fee if money is taken out early. Generally ranges from one month to five years.
IRA
Individual Retirement Account (IRA)—a portion of a person's income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities.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.
The risk varies and depends on the plan. IRA account includes multiple types of investments including stocks, bonds, etc.
Requires an account with a bank, brokerage firm or mutual fund company.
Wells Fargo
There is a limit to how much you can deposit. Banks will also charge a fee if money is taken out early. It saves money on taxes. Banks will charge a fee if money is taken out early.
MMA
Money Market Account – is a savings account that offers a higher rate of return in exchange for deposits that are larger than normal.
This account will not make much money, but more than traditional savings. Low risk.
Offered by banks and other financial institutions.
Bank of America
Bank may require a minimum amount of money in the account. Bank will charge a fee if money is taken out early.
Stocks
Stocks are a share of ownership in a corporation that represents a claim on a portion of that company's earnings.
High Risk because if a stock company fails, all
Investing Basics
Type of Investment
Description – explain what it is and how it works
Level of Risk and Potential Return – explain.
Real-life example of this investment (name or company)
Minimum investment amount or time?
Easy to start or stop investment?
Discuss.
CD
Certificate of Deposit is a savings note issued by a bank to a depositor who places funds in saving for a set period.
Low Risk because of the low return.
CDs are generally issued by commercial banks and are insured by the FDIC.
Bank of America
CDs require a minimum amount of money to invest. CDs are safe ways to save money but it is hard to get the money out. Bank will charge a fee if money is taken out early. Generally ranges from one month to five years.
IRA
Individual Retirement Account (IRA)—a 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.
The risk varies and depends on the plan. IRA account includes multiple types of investments including stocks, bonds, etc.
Requires an account with a bank, brokerage firm or mutual fund company.
Wells Fargo
There is a limit to how much you can deposit. Banks will also charge a fee if money is taken out early. It saves money on taxes. Banks will charge a fee if money is taken out early.
MMA
Money Market Account – is a savings account that offers a higher rate of return in exchange for deposits that are larger than normal.
This account will not make much money, but more than traditional savings. Low risk.
Offered by banks and other financial institutions.
Bank of America
Bank may require a minimum amount of money in the account. Bank will charge a fee if money is taken out early.
Stocks
Stocks are a share of ownership in a corporation that represents a claim on a portion of that company's earnings.
High Risk because if a stock company fails, all