Investing 101
When you buy a share of a company, what are you actually buying?
A small piece of ownership of the company, a share of a STOCK!
This is the money you set aside instead of spending right away.
Savings!
What is the term for money that you borrow and have to pay back?
Debt!
This company started with two Stanford students creating a website in a garage-like setting and eventually became one of the biggest search engines in the world.
Google!
What type of bank account is commonly used for everyday spending and paying bills?
A Checking Account.
A basket of investments you can buy and sell.
An ETF! (Exchange-Traded Fund)
This is the percentage you pay for borrowing money, like when you use a credit card or take out a loan.
Interest Rate!
Something you own that has value.
An Asset!
In The Wolf of Wall Street, Jordan Belfort makes his fortune selling these investments.
Stocks!
What is the main difference between a debit card and a credit card?
A debit card uses money you already have, while a credit card allows you to borrow money that you pay back later.
What is an investment called that represents a loan you give to a company or government?
A Bond.
This happens when prices go up over time, making your money buy less than it used to.
Inflation!
A significant decline in economic activity. (Ex. 2007-2009)
A Recession. (Ex. The Great Recession from 2007-2009).
This company owns Instagram, Facebook, and WhatsApp.
Meta!
This type of account is designed to help you save money and typically earns interest.
A Savings Account.
What do we call the amount of money a company pays its shareholders from its profits?
A Dividend!
This workplace account helps you save and invest money for retirement.
401k!
Your friend says, “I'm worth $50,000!” This number includes what she owns minus what she owes.
Net Worth!
This famous investor is known for buying companies he believes are undervalued and holding investments for a long time.
Warren Buffet!
What does it mean when you spend more money than you have available in your bank account?
An Overdraft.
Don't put all your eggs in one basket! In investing, what is this strategy called?
Diversification! You reduce risk of your investments through diversification.
This retirement account lets you invest money you've already paid taxes on, with qualified withdrawals in retirement generally being tax-free.
Roth IRA!
The original amount of money invested or borrowed.
The Principle amount.
In Shark Tank, entrepreneurs pitch their businesses hoping to get this from the Sharks in exchange for part of their company.
An Investment / Equity!
What is the largest bank in the United States?
JP Morgan Chase.