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S tocks, Bonds, Mutual Funds, and Margin. By Katie Martin, Parker Licknosky, Josie Page, and Sydney Parrish. Show Me's. http://www.showme.com/sh/?h=TYwkn4K. Stocks.
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Stocks, Bonds, Mutual Funds, and Margin By Katie Martin, Parker Licknosky, Josie Page, and Sydney Parrish
Show Me's http://www.showme.com/sh/?h=TYwkn4K
Stocks A stock is a part ownership in a company. For example, you buy 10 shares in Toys R Us, each costing $10.47. If you multiply 10 x 10.47 to get $104.70 as the amount of money you spend. At that point, you own 10 shares in Toys R Us. When the amount of money you spend for the stock is more than the stock is making, you lose money which is called loss. When the price paid is less than the money it's making you, it is called profit.
Stocks The the amount of money the stock is making you is called commision. A way to figure out the profit is by subtracting the commission by price paid. If the number you get is a whole number, you made profit. If it is negative, you lost money. An example of this is if you have 12 doughnuts and owing 14 to your friend. You subtract 12-14= -2. Now you lost all of your doughnuts and you still owe 2.
Stocks To find out how much money you have is adding your account balance by your profit. An example of this is when you add the amount of cookies by how many someone owes you. A way to figure out how much you paid for each share is divide the total price paid by the amount of shares you bought. A couple stocks I recommend you buy are Allstate and Walmart. This was the scoop on stocks.
Bonds This guide will teach you how to invest in Bonds. A bond is when you give money to a company. It's like giving a piece of candy to your friend and then they give you two pieces back. They repay the one you gave them but gave you an extra piece.
Bonds A good bond to buy is is the Treasury Bond. It's the government bond. Its safe because we know that the government is not just going to end.
Mutual Funds This guide will instruct you on how to invest in mutual-funds. A mutual fund is when multiple stocks are put together and bought as one.For example when you buy a box of doughnuts and every doughnut is different because there are multiple flavors in the doughnut box and bought as one that is like what a mutual fund is.
Mutual Funds You can buy one share of a mutual fund in fidelity for $83.06 You want to buy 15 shares of fidelity mutual fund at $83.06.You need to multiply 15x83.06. you would come up with 1245.90. This means that you can buy 15 shares of mutual funds in fidelity for $1245.90.
Mutual Funds You bought 15 shares of fidelity for $1245.90. Each share cost $83.06. The mutual fund will either go up or down but the mutual fund went up by $5.99. So you would add 83.06+5.99 and you would get 89.05.Now your mutual fund is selling each share for $89.05. If you choose to you can sell it there and make $5.99 in earnings.
Mutual Funds Now that you own 15 shares of fidelity for $1245.90 the mutual fund is going to go down or up. This depends on if all the stocks are doing good or are not doing good than the mutual fund's money is going to go down.This means that the cost of the mutual fund to buy will go down.When the mutual fund's price goes down, that is when you want to buy the mutual fund. If fidelity were to go down by $7.83 than the price you bought it at will be $7.83 more expensive than it is now. When this happens it would be 83.06-7.83 and you would get 75.23. Now the price of the mutual fund would be selling at $75.23.
Mutual Funds You bought 15 shares of fidelity for $1245.90. You want to know how much money each share cost when you bought it. What you would do is 1245.90/15 and you would get 83.06.That would mean that they cost $83.06 per share.
Mutual Funds I bought this mutual fund,Fidelity,because if you look at the graph at the last 5 years you could see that they have been moving up gradually all the time. This mutual fund is also very reliable so mostly nothing bad will happen. Fidelity mutual fund increased from $83.06 a share to $84.93 a share. It did turn out the way I thought it would.
Mutual Funds You should probably consider buying a couple shares of fidelity because they are always moving up in value. Also they are making a profit. So there for you will make money.
Margin Margin is when a stock broker loans you money so you can buy more mutual funds, bonds or stocks. Example: If you had one chocolate bar and you ask your friend for another and they expect you to give them back another chocolate bar and a lollipop, that is like margin. Explaining the Math: Multiplication: If you want to buy stock in Red Robin and one stock costs $34.58, and you want to buy 500 stocks, but only have enough for 250, you need margin. If you have enough for 250 stocks, you would have $8645. (34.58*250=8645) To buy 500 stocks, your broker would loan you another $8645. (8645+8645=17,290) After you invest, you have to pay them back with interest. Even if your stock does not do well, you still have to pay the broker back.
Margin Addition: If your broker gives you $8645.75 to buy stock and you already have $8645.75, (8645.75+8645.75=17,921.50) then you now have $17,921.50 to buy stocks. Subtraction: If the broker has a fee of $3.75for every transaction, how much money will you have before he loans you the money? 8645.00 - 3.75 8641.25 http://www.showme.com/sh/?h=ZW6b9S Division: You have borrowed $7,000.60 total from 6 brokers. How much money do you owe each of them? 1160.10 6 7000.60
Margin Reflection: One of the stocks I bought was Red Robin. At first my stock did well, but then it went down and I lost money. I thought the stock would do well and increase but it didn't. Suggestions: Before using margin, you should make sure the stock will most likely go up and that you will have enough profit to pay back the money and interest.
