Warm up Quiz (Short Answer) 10 min
1. What are the functions of a bank?
2. What did the Federalists believe?
3. How long did the 1st national bank of the United States
exist?
4. What was the Gold Standard?
5. What agency insures your money against bank failure?
Table of Contents Economics
Page 14 – International trade
Page 15 – Comparative advantage
Page 16 – Vocabulary Quiz
Page 17 – Walmart Writing Prompt
Page 18 – Introduction to Demand
Page 19- Demand Activity
Page 20- Supply Notes
Page 21- Shark Tank Reflection
Page 22- Market Notes
Page 23 – Supply and Demand Quiz
Page 24- Market structures Notes
Page 25- Market Failures
Page 26- Spending and credit notes
Page 27- History of Banking
Page 28- Becoming a wise investor
BECOMING A WISE
INVESTOR
Investments and Returns
•
What is investment?
The action or process of investing money for profit
or material result.
•
What is risk?
The situation in which the outcome is not
certain, but probability can be estimated.
•
What is return?
The amount you earn on your investment
Return on Investments
• What is Return on Investment (ROI)?
• It's the amount of money you make from an initial financial
investment.
• For example, if you spend $10k on a machine and the revenue
from it is $30k, the ROI is $20k, or 200%
Financial Asset and investments
Common Stock- Voting share of ownership in a Corporation.
Advantages
1. Greatest potential for growth
2. Get voting rights
3. Higher return than many assets
Disadvantages
1. Last claim on assets
2. May not get a dividend
3. Risk
Financial Assets and Investments
Preferred Stock- Non-voting share of ownership in a
corporation.
Advantages
1. Dividends
2. First claim after creditors
3. Lower risk
Disadvantages
1. No voting rights
2. Risk
Financial Assets and Investments
Mutual Fund-Share of ownership in a company that invests
in stock and bonds
Advantages
1. Diversified portfolio
2. Potential for growth
3. Lower risk
Disadvantages
1. Not insured by FDIC
Financial Assets and Investments
Pension Fund- Account for a retiree from their specific
company
Advantages
1. Income security
2. Tax sheltered
Disadvantages
1. Salaries garnished
2. Low return
3. Non transferable
4. If company fails, you lose your pension
Financial Assets and Investments
Individual Retirement Account (IRA)- Long term account set
up by an individual to save money for retirement
Advantages
1. Long term tax sheltered (pre-tax income)
2. Don’t have to be employed to create
Disadvantages
1. Penalties for early withdrawal
2. Non transferable
Financial Assets and Investments
Corporate Bond – A loan to a corporation with a set interest
rate
Advantages
1. Safer than stock
2. Can be liquidated quickly
Disadvantages
1. Taxable income
2. Interest rate changes
Financial Assets and Investments
Junk Bond – Very risky corporate bond
Advantages
1. High rate of return
Disadvantages
1. High risk of default
Financial Assets and Investments
Municipal Bond – Government Bond from a local
government
Advantages
1. Tax exempt
Disadvantages
1. Low rate of return
Financial Assets and Investments
US Treasury Bonds, Bills and Notes – Bond from the
Federal Government
Advantages
1. Safest form of investment (no risk)
2. Low denominations available
3. Very easy to obtain
Disadvantages
1. Non-transferable
2. Long term
3. Penalty for early redemption
4. Low rate of return
Introduction to the Stock Market
http://www.youtube.com/watch?v=L58j4B0Xmds&list=PL20
B024A10358D9AD
Stock Market Activity
• Wednesday, April 8
You will be given $10000 to invest.
Stock Market Activity
• Wednesday, April 8
You will build a portfolio with shares from the following stock:
1. Apple (AAPL) NASDAQ
2. Exxon/Mobil (XOM)
3. Chase (CCF)
4. Sony (SNE)
5. Wal-Mart (WMT)
6. Yahoo (YHOO)
7. Google (GOOG) NASDAQ
8. Facebook (FB) NASDAQ
9. Twitter (TWTR)
10. AT&T (T)
Stock Market Activity
• Wednesday, April 8
Please list the value of the stock on 4/8/2015 (already
done)…and track it 2 more times during the week.
You can use your cell phone, internet, or the newspaper to
track the stock
Stock Market Activity
• Due Monday, April 13
In class on Monday you will sell your stock and write a
short essay including the following:
Why you chose that particular stock?
Did you get a return on your investment or did you lose
money?
How did the stock market perform overall during the week?
What about your stock?
Do you think the stock market is a wise investment? Why
or why not?
This is a project for a test grade
Stock Market
11/11/2013
NYSE 15876.22
S&P 500 1790.62
NASDAQ 3972.74
4/8/2014
NYSE
17,875.42
S&P 500
2076.33
NASDAQ
4,485.93
Comparison
Stock
Apple (AAPL)
Exxon/Mobil
(XOM)
Chase (CCF)
Sony (SNE)
Wal-Mart (WMT)
Yahoo (YHOO)
Google (GOOG)
Facebook (FB)
Twitter (TWTR)
AT&T (T)
New York Stock
Exchange (DOW)
NASDAQ
S&P 500
10/27
Closing
Price
Date 4/8
Closing Price
105.11
93.71
126.01
85.75
34.64
17.48
76.59
47.43
540.77
80.28
48.56
34.11
16,817.94
43.50
28.97
80.50
43.61
537.02
82.32
52.87
32.69
17,875.42
4,485.93
1,961.63
4,910.23
2,076.33
Tracking- Student
Stock
Apple (AAPL)
Exxon/Mobil
(XOM)
Chase (CCF)
Sony (SNE)
Wal-Mart (WMT)
Yahoo (YHOO)
Google (GOOG)
Facebook (FB)
Twitter (TWTR)
AT&T (T)
New York Stock
Exchange (DOW)
S&P 500
NASDAQ
4/8
Closing
Price
126.01
85.75
43.50
28.97
80.50
43.61
537.02
82.32
52.87
32.69
17,875.42
2,076.33
4,910.28
Date 4/10 4/14
Final
Closing
Closing
Price
Price
126.56
126.85
29.90
80.84
30.37
80.29
540.78
539.17
17958.73 17,977.04
2091.18
4974.56
2,092.43
4,988.25
Tracking- Key
Stock
Apple (AAPL)
Exxon/Mobil
(XOM)
Chase (CCF)
Sony (SNE)
Wal-Mart (WMT)
Yahoo (YHOO)
Google (GOOG)
Facebook (FB)
Twitter (TWTR)
AT&T (T)
New York Stock
Exchange (DOW)
S&P 500
NASDAQ
4/8
Closing
Price
126.01
85.75
43.50
28.97
80.50
43.61
537.02
82.32
52.87
32.69
17,875.42
2,076.33
4,910.28
Date 4/10
Closing
Price
126.56
4/14
Final
Closing
Price
126.85
85.34
17,958.73
43.80
30.37
80.29
44.77
539.17
83.01
51.62
32.88
17,977.04
2,091.18
4,974.56
2,092.43
4,988.25
29.90
80.84
540.78
Investment
Price 4/8
Shares
Bought
Amount
Final Price
4/14
Apple (AAPL)
Exxon/Mobil
(XOM)
126.01
85.75
10
1260.10
126.85
85.34
Chase (CCF)
Sony (SNE)
Wal-Mart (WMT)
43.50
28.97
80.50
Yahoo (YHOO)
43.61
Google (GOOG)
537.02
Facebook (FB)
Twitter (TWTR)
82.32
52.87
83.01
51.62
AT&T (T)
32.69
32.88
Stock
50
50
1448.50
4025
43.80
30.37
80.29
Shares
Sold
Amount
10
1268.50
50
50
1518.50
4014.50
5
2695.85
Total
9497.35
Earn/loss
+78.65
44.77
5
Total
2685.10
Total
9418.70
539.17
Stock Market
4/7/2014
NYSE
16245.87
S&P 500
1845.04
NASDAQ
4079.75
10/27/2014
NYSE
16,817.94
S&P 500
1,961.63
NASDAQ
4,485.93
Essay Questions
1. Why did you choose these particular stocks?
2. Did you get a return on your investment or
did you lose money?
3. How did the stock market perform overall
during the week?
4. Do you think the stock market is a wise
investment? Why or why not?
Stock Market
10/27/2014
•NYSE
16,817.94
•S&P 500
1,961.63
•NASDAQ
4,485.93
11/3/2014
•NYSE
•S&P 500
•NASDAQ