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Stocks and Bonds

Stocks and Bonds. By:Evan Botterman and Tyler McKoy. Stocks. Very simply, a stock is a share in the ownership of a company The more stocks in a company someone owns, the more ownership they have Holding stocks means that you are a shareholder

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Stocks and Bonds

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  1. Stocks and Bonds By:EvanBotterman and Tyler McKoy

  2. Stocks • Very simply, a stock is a share in the ownership of a company • The more stocks in a company someone owns, the more ownership they have • Holding stocks means that you are a shareholder • Being a shareholder entitles you to a share of the companies profits • These can sometimes be paid in dividends • The value of the stock goes up and down depending on how the company does

  3. Bonds • A bond is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time • Bonds are used by various organizations to finance projects • Sometimes companies use bonds if they need money fast—but they will have to pay back the money with interest later on

  4. Examples • Stocks: IBM (IBM), YHOO (Yahoo), MSFT (Microsoft) • Many stocks are traded on stock exchanges such as the New York Stock Exchange • Bonds: US Treasury Bond, Corporate Bond, Municipal Bond, James Bond • Bonds can be purchased from the companies or banks

  5. Assignment!!! • Write down a simple definition for stocks and bonds and give an example of each. • Everyone look up three stocks and write down the starting price and current price and record it. Which one would you invest in now?

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