Appendix B

1
Appendix B

• Pg. 702
• How to Invest in Stocks
• Guest Speaker
• Quick overview of personal finance

2
Tools for Success!

• Knowledge- Why?
• Credit Score what you dont know CAN hurt you
• Time Two Twins (age 22)
• A. IRA _at_ 12, 2,000 per year until age 28
• B. IRA _at_ 12, 2,000 per year age 29-65

3
Books

• The Wealthy Barber, David Chilton
• The Millionaire Next Door,
• Thomas Stanley and William Danko
• Rich Dad, Poor Dad, Robert Kiyosaki
• Investing for Dummies, Eric Tyson
• And LOTS more

4
Investment Vehicles

• Advantages and Disadvantages
• Stock
• Preferred Stock
• Bonds
• Mutual Funds

5
Understanding Stocks

• Stock Quotes (per share)
• Measuring returns (include taxes and expenses)
• Risk vs. return (buying on margin)
• DOLLAR COST AVERAGING (per month)
• RULE OF 72 (time to double investment)
• Influences economic conditions, industry,
  characteristics of the firm

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Stock Quotations

• Price Value of firm/ of shares
• 52 week price range
• Symbol Nike NKE
• Dividend
• Price to Earnings Ratio (P/E)
• Volume
• Indexes SP, Dow, NASDAQ

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Factors effecting stock prices

• Economic conditions
• Market conditions
• Industry
• Firm
• Public opinion.the swarm
• Stock market efficiency

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Who can help!?!?

• Professionals Stock brokers, investment
  representative, financial planners etc.
• Media WSJ, Money Magazine, PBS, CNN
• Internet Yahoofinance.com, bankrate.com, 1000s
  of sites!
• Study, personal financial plan Fin 218.
• PAY YOURSELF FIRST

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Next Time

• Review financial section work day
• Finance Plans due next week (Thursday).