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INVESTMENT OPPORTUNITIES. Risk and Return . Higher risk usually means a chance at a higher return . Also means that you could lose more money. Lower risk usually means lower return. Corporate Investing. Stocks
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Risk and Return • Higher riskusually means a chance at a higher return. Also means that you could lose more money. • Lower risk usually means lower return.
Corporate Investing • Stocks • Bond—A debt investment. Essentially, it’s like LOANING money to a corporation or government. They “borrow” your money for a fixed amount of time at a fixed interest rate. LOW RISK
Money Market Funds • Savings accounts that yield a percentage of return based on interest rates and investments made by the money market manager. • Low risk, low interest, low yield • Example: Treasury Bills (T-Bills) Mature in 1 year or less. usually issued in denominations of $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million. Other positives are that T-bills (and all Treasuries) are considered to be the safest investments in the world because the U.S. government backs them
Mutual Fundshttp://www.investopedia.com/video/play/introduction-mutual-funds#axzz1juFS30o6 • Pool of funds from different investors. • May invest in stocks, bonds, money market, etc. in an effort to increase capital gains. • Annual maintenance fees • Some have a load—sales fee paid for investing (typically 5 or 6%) • Purchase through brokerage firms