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Investments

Investments. Why would you invest money?. The goal is to get a return (profit earned by an investor.). Schoolhouse Rock V ideo. http://www.youtube.com/watch?v=foaYpoH0Fnk. What are some different types of investments?. Savings Stocks Bonds Company bonds Government bonds. Savings.

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Investments

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  1. Investments

  2. Why would you invest money? • The goal is to get a return (profit earned by an investor.)

  3. Schoolhouse Rock Video • http://www.youtube.com/watch?v=foaYpoH0Fnk

  4. What are some different types of investments? • Savings • Stocks • Bonds • Company bonds • Government bonds

  5. Savings • Savings and checking accounts- Institutions accept people’s money and them loan it out to people. • Important vocabulary • Principle- initial amount deposited • Interest- Payment received when loaning money

  6. Stocks • Stocks are buying partial ownership of a company and if the company does well, the value of your stock does up. • Analogy- A stock is like a block in this castle. The bigger it is the more valuable it is.

  7. Bond • A bond is lending money to a company • Like James Bond movies there is almost always a return

  8. Company Bond • Companies use them to buy new equipment, research, and promise to pay bondholders interest.

  9. Government bonds • These are when you borrow money to the government. • Considered one of the safest of all investments. • One example was War bonds which were purchased during World War 2 and other wars to help fund the military.

  10. Investment Activity • During this activity you are going to act as the Investor. • You start with $1000 • There will be seven rounds • You are trying to maximize your return

  11. Steps each round • Step 1: Calculate the value of everything you own • Step 2: Sell what you wish to and add the value of the sales to your additional wealth. • Step 3: Use your additional wealth to purchase any new additional investments which you want. (You must pay the current amount the investment is worth in this game round.) • Remember to record you calculations

  12. Round 1 • Make initial purchases

  13. Activity review • Example: • Round 1: • Total wealth: 1000__ • New purchases: Quantity (How Many): Costs: • _________GPC______ _____2_____ __250____ • __________________ ___________ _________ • __________________ ___________ _________ • __________________ ___________ _________ • Extra Money: __750____ • Round 2: • Total Wealth: __1030_ • Sales: • ____1 GPC____ 750=140= 890 Extra money Sale value: __140___ • ______________ Sale value: ________ • ______________ Sale value: ________ • ______________ Sale value: ________ • New purchases: • _____2 GB_____ 890-210= 680 Extra Money Purchase Cost: ___210__ • ______________ Purchase Cost: ________ • ______________ Purchase Cost: ________ • ______________ Purchase Cost: ________ • Extra Money: ___680____

  14. Round 2 • Next round News: Big movie expected

  15. Round 3 • Next Round news: Hurricane season coming

  16. Round 3 • Next round news: Chicken found to be healthy

  17. Round 4 • Next round news: Raising interest in Zoo Zoo Phone

  18. Round 5 • Next Round News: Recession predicted

  19. Round 6 • Next Round News: More stable recovery

  20. Round 7 • Remember to calculate your final wealth

  21. Reflection • Take some time to finish the reflection on page 6 using the information you learned during the activity

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