2. Compound Interest
• Is computed on the amount saved
plus the interest previously earned.
• The more money you have the more
interest you earn.
3. Certificate of Deposit
• Allows you to earn a higher interest
rate than a regular savings account. It
requires a minimum deposit of $100 to
$1000 or more. You must leave the
money on deposit for a specified
period, from a few days to several
years.
4. Money Market Account
• Pays a variable interest rate based on
various government and corporate
securities. Interest paid on money
market accounts reflects the current
rates of interest being paid in the
money markets.
5. Mutual Funds and Stock
• Mutual funds- instead of buying
individual stocks and bonds, people
can buy shares in a mutual fund
managed by an investment company.
• Stock- when you buy a share of stock
you become part owner of a
company.
7. $100 investment for 20 years
• 5% interest- $265.33
• 8% interest- $466.10
• 10% interest- $672.75
8. liquidity
• The ease with which an investment
can be changed into cash without
losing its value.
9. Common and preferred
stock
• Preferred Stock- has priority over
common stock in the payment of
dividends.
• Common Stock- represents general
ownership in a corporation and a right
to share in its profits.
10. NYSE
• The best-known stock exchange is the
new york stock exchange in new york
city.
11. NASDAQ
• The national association of security
dealers automated quotations
• The over-the-counter market is a
network where securities transactions
occur using telephones and
computers rather than on an
exchange.
