Stocks
What is a stock and what can you do with it?
Purchasing stock entitles you to a share of a small percentage of a business or company. When your stock goes up in value you can sell it and make profit.
What are bonds, and what are the differences of them from a stock
Stocks reflect ownership in a corporation, whereas bonds are IOUs issued by governments or companies
Market capitalization-weighted index of 500 leading public companies in the U.S. stock market.
S&P 500 Index
Active investing:
Type of Investment Style
Buying and selling investments regularly and consistently.
Can be managed by yourself or a professional.
Bond
a safe place that allows you to trade, hold sell and buy the following; stocks, bonds, preferred shares, mutual funds and ETFs
brokerage account
What impact do interest rate changes have on bond prices?
Bond prices decrease and vice versa when interest rates arise
A hands-off investment style has tax advantages and is managed by investment advisors.
Passive Investing
Dividends
Stocks
What are some reasons people do not invest in stocks?
Risk, Lack of education, time constraints, personal values
Why do businesses and governments create bonds?
Companies issue bonds for expansions, and government issued bonds to finance projects
Type of investment style that requires buying and selling frequently, being managed by yourself or a professional, time, knowledge, and desire.
Active Investing
S&P 500
Bonds
Where can you buy stocks (both large amounts and small amounts)?
Small amounts-you can buy through online brokerages without the advice of a professional and you can do it on your own
Large amounts-you will need to use a professional, such as an investment advisor or a portfolio manager.
When investors get closer to retirement, why would they add bonds to their portfolios?
Bonds provide secure funding and steady income, which are crucial for retirement planning
They are resulting from investments. Characteristics: taxed at a favourable rate and more money is made in the long run.
Long-term gains
Passive Investing
Bonds
A basket of funds that are traded in a stock exchange
ETFs (Exchange Traded Funds)
What is the expiry date of a bond called?
The maturity date
Sale of an asset that has been owned for a year or less. Subject to less favourable taxes
Short Term gains
Rugpulls
Stocks