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Become a member of the Common Cents Investment Group (CCIG) for just $20 a year! Gain access to a network of fellow investment enthusiasts, participate in a virtual portfolio challenge with a chance to win cash prizes, and enhance your knowledge about stock ownership, dollar-cost averaging, and funds. Enjoy benefits like leadership opportunities, membership T-shirts, and free pizza at meetings! Engage with our resources and learn how to choose the right broker for you. Start your investment journey today and elevate your confidence in personal finance!
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Common Cents Investment Group September 17th 2012
Agenda • Membership • Investopedia • Stock Ownership • Dollar Cost Averaging • Funds • Choosing the right broker
Membership $20 • Cost is only $20 for the whole year! • Benefits: • Member of a very beneficial and informative club that will inevitably be valuable in your future • A network of friends who share a similar interest in investing and personal finance • A virtual portfolio challenge that will strengthen your confidence in investing
Membership • Benefits: • Possibly T-Shirts? • Resume booster! • Leadership opportunities • And of course…Free pizza & Pop!
Membership • Full Membership requires: • Member has attended at least 2 CCIG meetings • Member has paid $20 club fee
Investopedia • A year long virtual investment challenge on www.investopedia.com • The winner at the end of year wins a cash prize! • Each participant will have: • $100,000 of virtual cash • Until the end of spring semester to trade • The ability to view their own trade history as well as the trade history of other players • Great resources at their access to do research on investments
Investopedia • How to join: • Create an Investopedia account (easy) • Click on Simulator on the home page
Investopedia • How to join: • Click “Add/Edit Games”
Investopedia • How to join: • Click “Join Game”
Investopedia • How to join: • Search “CCIG OSU 2012” and select “Join”
Investopedia • How to join: • Game Password: ******** • Password will be given to official members
Stock Ownership • What does it mean to own a stock? • Share of stock: A security representing fractional ownership in a firm and a claim on its net assets and earnings. • Value of stock changes with market • Voting rights • Do many things with stocks: • Buy (hold long positions) • Sell • Short selling (short position) • Cover short • More on this later…
Stock Ownership • Yahoo! Finance summary of P&G stock
Dollar Cost Averaging • An investment strategy where you put equal amounts of money into an investment periodically • Purchase more shares when prices are low, and less shares when prices are high – overall increase in portfolio value
Funds • What is a fund? • A collection of stocks, other equity and debt instruments • Can track a particular index (such as the Dow Jones or S&P 500) • Diversification • “It’s the only free lunch”
Funds • Indexes • Guaranteed market rate of return • Diversified • Low expenses • Usually tax efficient • Easy to build a portfolio based on your risk tolerance • Management Fee • 2% or more per year • Lower for ETF’s
Funds • Index Mutual Funds • Higher minimums • Better for small, frequent purchases • Only priced and traded at the close of the day • Examples: • Vanguard • Fidelity • Blackrock • Janus
Brokers • Different brokers are good for different things • Next week we will discuss the differences and our personal preferences • A few websites to research different brokers • http://www.stockbrokers.com/2012-online-broker-review.html • http://www.stocktradingtogo.com/compare-online-brokers/
Questions? ? • Questions, comments or concerns?