Marissa Doria
Block 3

Savings
 Storage of money for future use

Compound Interest
 Compound on the amount saved plus the interest
previously earned
 It is important to invest regularly to keep your savings
growth rate high

Certificate of Deposit
 Allows you to earn a higher interest rate than a regular
savings account
 It requires a minimum deposit of $100 to 1,000 or more

Money Market Account
 Pays a variable interest rate based on various government
and corporate securities
 A typical interest rate on a Money Market Account is 4-
5%

Mutual Funds vs Stock
 Mutual Funds—Allow investors to spread out their risk
among many investments
 Stock—Ownership in a corporation

Common Alternative Investments
 Real Estate
 Commodities
 Collectibles

What would the difference between a $100
Investment for 20 yrs at 5%, 8% and 10% Interest?
 41,928.43

Liquidity
 Ease with which an investment can be changed into cash
without losing its value
 It is important because it is investments that can be
quickly turned into money

Common and Preferred Stock
 Common Stock represents general ownership in a
corporation and a right to share in its profits
 Preferred Stock has priority over common stock in the
payment of dividends

NYSE
 NYSE is the New York Stock Exchange is the best known
stock exchange
 The traders own or stock and trade among them

NASDAQ
 National Association of Securities Dealers Automated
Quotations: a computerized data system to provide
brokers with price quotations
 They exchange traded funds and stock