Famous Bonds
The bond that ends in 007.
James Bond
Define Liquidity.
This is when stocks can easily be transferred into cash.
Define Fundamental Analysis
•Fundamental analysis uses data to evaluate a security's (such as a stock's) value.
•Fundamental analysts will look at figures and financial ratios, the big four are:
1.earnings
2.earnings-per-share (EPS),
3.price-earnings ratio (P/E)
4.dividend yield
Define Investing.
Investing is when we commit money to an endeavour with the expectation of obtaining an additional income or profit.
Define Law of supply
Law of Supply states that the number of goods and services offered for sale increases as the price increases.
Supply shows how much a good or service a producer is willing and able to make available at each price during a specified time period
Define Bond
Bonds are a debt investment where you loan money to a government or a business for a defined amount of time and at a fixed interest rate.
Name 2 strategies to investing
Buy and Hold, Value Investing, Active Trading
Explain Economics.
A continuous cycle of ups and downs within a economy. Business's are effected my supply, demand and consumer confidence.
__________ ______________ your earning potential whether or not you receive a raise, decide to work overtime or look for a higher-paying job.
Investment maximizes
The supply curve will always be __________. The demand curve will always be __________.
Upward sloping and downward sloping
Do bonds have an end date?
Yes. They are different than stocks. When a contract is made there is an end date.
Define Stocks and Mutual Funds.
•Stocks - are part ownership of a company. The value of a stock changes throughout the day.
–If the price goes up, the value of your investment increases; if the price falls, the value decreases
• Mutual Funds - are a pool of stocks, bonds and other investments. They are a portfolio combination that follows a specific idea.
What should you look at before buying a stock?
Research, news articles, stock analysis
–Bonds
–Stocks
–Mutual Funds
–Real Estate
–Or businesses
What is equilibrium?
Equilibrium Price (also called the Market price) is the price at which goods and services may actually be bought and sold.
Equilibrium Price is where quantity demanded is equal to the quantity supplied
What are the two types of bonds?
coupon bonds and non-coupon bonds
Two tips for investments.
Find a balance, and diversify your investments.
What is the relationship between quantity stocks and price?
The higher the quantity the higher the price
Investing is not _____________. Tell me why?
Gambling.
•A "real" investor does not simply throw his or her money at any random investment;
•Investors perform thorough analysis and commits capital only when there is a reasonable expectation of profit.
•Yes, there still is risk but investing is more than simply hoping Lady Luck is on your side.
From the video, what are 3 shifters of the demand curve?
1. Taste/Preference
2. Number of Consumers
3. Price of Related Goods
4. Income
5. Expectations
Safety net, loan, slow payments over time, better credit
What is TICKER?
a Ticker is a way to quickly find the appropriate stock within a company example
XOM: Exxon
BAC: Bank of America
AAPL: Apple
GOOG: Google
GE: General Electric
What is the market place?
•Marketplace brings together buyers and sellers of a particular good and service to establish market price.
•Stock market sets stock prices
•The TSX is a marketplace
•Gas and Oil markets set prices based on supply and demand
Investments with the most risk also tend to have the ____________ _________.
highest returns
What are 3 shifters of supply?
1. Price of resources
2. Number of Producers
3. Technology
4. Taxes and Subsidies
5. Expectations