1 / 8

AOF Principles of Finance

AOF Principles of Finance. Unit 3, Lesson 10 Investment Instruments. When you purchase stock you own a piece of the company. Many companies offer both common and preferred stock. There are many different types of stock investments. A stock’s value can change at any moment.

gigi
Télécharger la présentation

AOF Principles of Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AOFPrinciples of Finance Unit 3, Lesson 10 Investment Instruments

  2. When you purchase stock you own a piece of the company • Many companies offer both common and preferred stock. • There are many different types of stock investments. • A stock’s value can change at any moment. If you had money to invest, what type of company would you invest in?

  3. The first time a company issues stock it offers an initial public offering, or IPO • When a stock first becomes available it is considered a primary market trade. • Secondary markets allow investors to purchase securities from other investors. • The New York Stock Exchange is considered a secondary market. Can you think of other securities exchanges that would be considered secondary markets?

  4. Bonds are loans that investors make to corporations or the government

  5. Mutual funds pool everyone’s money together • A mutual fund company receives money from people who want diversified holdings. • The company pools their money to create greater buying power. • The mutual fund company invests clients’ money into a collection of stocks, bonds, and/or other securities. Discuss some of the benefits of “pooling” money.

  6. Exchange-traded funds are hybrid investment instruments • Exchange-traded funds (ETFs) are part stock and part mutual fund. • ETFs are categorized by their investment target. • ETFs help to diversify an investor’s portfolio. How are ETFs similar to mutual funds? How are ETFs similar to stocks?

  7. What will something be worth in the future? • Options give an investor the right, but not the obligation, to buy securities at a fixed date. • Futures require investors to purchase securities at a fixed date. • Annuities are offered by insurance companies and are considered tax-deferred retirement savings plans.

  8. Alternative investment options are available • Hedge funds use high risk investment strategies in an attempt to enhance returns. • Real estate investment trusts allow you to invest in real estate that you will never live in. • Private equity investments generally involve an investment of capital into a new company.

More Related