The price of a stock iii. Bull market 1. Rising Stock Prices iv. Bear Market 1. Falling stock prices v. Stock Terminology 1. Dividend a. Stockholder’s portion of a company’s profit 2. Stock Split a. Divide stock price into greater shares vi. Aggressiveness based on age 1. Young age a. Afford to be more of a risk taker 2. Close to retirement age a. Transfer to a secure low risk investment d. Bonds i. Loans given to a government or corporation ii. Three basic Components 1. Par Value-what you paid/worth when bond matures 2. Maturity-length of time before repayment 3. Coupon rate-interest rate that will be used iii. Rated based on risk 1. AAA to D iv. Types 1. Savings Bonds a. low par bonds b. $50 now c. 20 years later $100 2. Corporate Bonds a. moderate risk b. Depends on the success of company 3. Municipal Bonds
a. Issued by state or local government 4. Treasury Bonds a. “Full Faith and Credit of the US” b. Safest 5. Junk Bonds a. High risk/high reward 4. Budget a. Estimate of income and expenditure for a set period of time b. Savings i. Most advisors recommend saving 10-20% income ii. 50-20-30 5.
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- Spring '18