+ investments. + purpose of investments investments constitute something that is purchased for...
TRANSCRIPT
![Page 1: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/1.jpg)
+
InvestmentsInvestments
![Page 2: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/2.jpg)
+Purpose of Investments
Investments constitute something that is purchased for future benefit (money, experience)
Promotes economic growth and contributes to a nation’s wealth
![Page 3: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/3.jpg)
+
Financial System Is a network of savers, investors, and financial institutions that work together to transfer savings to investors.
![Page 4: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/4.jpg)
+Financial Intermediaries
Financial Intermediaries –are financial institutions that lend the funds that savers provide to borrows.
Commercial Banks
Savings & Loans
Credit Unions
Savings Banks
Mutual Savings Banks
![Page 5: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/5.jpg)
+
![Page 6: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/6.jpg)
+Investing “Trade-Offs”
Liquidity- Savings accounts are good for immediate cash, but pay a low interest rate
Return- the money an investor receives over and above their initial investment
Risk- Anything insured by the gov’t carries no risk compared to investments with high risks (but greater rewards), such as investing in the stock market
![Page 7: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/7.jpg)
+
Mutual Fund and CD’sMutual Fund and CD’s
An investment company that pools money to invest in several different stocks on behalf of a group of investors. The fund is managed by a professional investment manager. (Includes Pension Funds- IRA’s)
(A package O’ stocks)
CD’s are common form of investment issued through banks for 2yrs. @ 4% interest
![Page 8: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/8.jpg)
+BondBond
An investment in a corporation or a government body through a loan. If you purchase a bond, you are loaning money with the expectation of interest compounded on your investment.
Savings Bonds, Municipal Bonds, Corporate Bonds, Junk Bonds
![Page 9: + Investments. + Purpose of Investments Investments constitute something that is purchased for future benefit (money, experience) Promotes economic growth](https://reader035.vdocuments.net/reader035/viewer/2022070403/56649f2f5503460f94c49faf/html5/thumbnails/9.jpg)
+What is a Stock?What is a Stock?
Ownership of shares in a corporation. Stockholders share a portion of the profit or loss incurred by the company.