Intro to Stocks & Portfolio
Management
• Key concepts in equity investing and portfolio
construction.
What is a Stock?
• - Ownership share in a company.
• - Stockholders can receive dividends and
capital gains.
• - Types: Common vs Preferred.
How Stock Investing Works
• - Buy low, sell high
– Look for undervalued stocks or patient capital
- Dividends: Profit-sharing payouts
Net income, either reinvested or paid out
Basics of Portfolio Management
• - Diversification: Spread risk across assets.
• - Asset Allocation: Mix of stocks, bonds, etc.
• - Goal: Maximize return, minimize risk.
Building a Simple Portfolio
• - Choose based on goals and risk tolerance.
• - Example: 60% stocks, 30% bonds, 10% cash.
• - Rebalance regularly.
Key Takeaways
• - Stocks offer ownership and growth potential.
• - Diversified portfolios reduce risk.
• - Align portfolio with your financial goals.
Understanding Bonds, Risk vs Return,
Ponzi Schemes & Phishing
• Build foundational knowledge in personal
finance, investing, and fraud detection.
What is a Bond?
• - A loan from an investor to a borrower
(government or corporation).
• - Face Value: Amount repaid at maturity.
• - Coupon Rate: Interest paid periodically.
• - Maturity: Date bond is repaid.
• - Types: Government, Corporate, Municipal.
How Bonds Work
• Face Value: $1,000
• Coupon Rate: 5% annually ($50/year)
• Maturity: 10 years
• Total Return: $500 in interest + $1,000
principal
Risk and Return (RvR)
• - Return: Gain/loss on investment.
• - Risk: Chance actual return differs from
expected.
• - Types of Risk: Market, Credit, Inflation,
Interest rate.
Risk vs Return Curve
• - Graph: Risk (X-axis) vs Return (Y-axis).
• - Visual: Upward slope (bonds to crypto).
• - Principle: Higher returns require more risk.
Ponzi Schemes – How They Work
• - Fraud where returns are paid using new
investors’ money.
• - Traits: High promised returns, no
transparency, hard to withdraw.
• - Example: Bernie Madoff’s $65B scheme.
Ponzi Scheme Lifecycle
• 1. Recruit initial investors
• 2. Pay fake returns from new funds
• 3. Expand via referrals/fake statements
• 4. Collapse when new funds stop
Phishing – What It Is
• - Cyberattack tricking users into revealing
data.
• - Targets: Bank info, passwords, identity.
• - Methods: Fake emails, websites, SMS.
Spotting a Phishing Attack
• - Urgent/threatening language
• - Misspelled domains (e.g., amaz0n.com)
• - Suspicious links or attachments
• - Requests for sensitive data
Prevention & Best Practices
• - Don’t click suspicious links.
• - Verify sender’s identity.
• - Use multi-factor authentication.
• - Report fraud attempts.
Summary & Review
• Bonds: Fixed-interest, low-risk investment.
• RvR: More risk = more potential return.
• Ponzi: Fake profits from new investors.
• Phishing: Cyber scams for data theft.
Quick Quiz / Discussion
• 1. What’s the main difference between a bond
and a stock?
• 2. Why do Ponzi schemes collapse?
• 3. Name two phishing signs.
• 4. Who is suited for low RvR investments?