Investing in America

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Investing in America

• Aim How do Americans invest their money?
• ERHS Mr. Graboski

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Investing in America

• Investing Using money that you have saved to
  earn more money (financial gain).
• Securities Investments that give their holders
  the right to receive some form of return, or
  profit. The two most common kinds of securities
  are stocks and bonds.

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Investing in America

• Bond Is a loan in which the borrower promises
  to pay the lender a fixed rate of interest over
  the term of the loan and then repay the principal
  at the end of the term, or date of maturity.

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Investing in America

• The two types of government bonds are Treasury
  Bonds and Municipal Bonds.

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Investing in America
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Investing in America

• When the federal government needs to borrow
  money, it issues bonds. Treasury bond terms
  range from 10 to 30 years.

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Investing in America

• Corporate Bonds are issued by corporations, and
  are riskier to invest in than government bonds.
  Why?
• There are two types of corporate bonds,
  investment grade bonds and junk bonds. Junk
  bonds offer higher potential returns in exchange
  for a moderately higher risk that the company
  might fail.

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Investing in America

• Stocks Are securities that represent an
  ownership share in a business.
• When a company issues shares of stock, it is
  actually selling ownership rights.
• Investors who buy the companys stock become its
  shareholders. These shareholders own the company.

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Taxes

• Capital Gains taxes are charge on income received
  from the sale of stocks, bonds, and property.