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Finance

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  • 1. Don’t start with the money!
  • 2. Remember him?
  • 3. Why Finance? “People don’t buy what you do, they buy why you do it.”
  • 4. Can money make me happy?
  • 5. Should I invest in this?
  • 6. Should I invest in this? TIMEMONEY
  • 7. K W L FINANCE & FINANCIAL LITERACY
  • 8. Text
  • 9. How should I invest $3000?
  • 10. Brokerage Firm #1 Brokerage Firm #2 Brokerage Firm #3 Paolo Pedro Gonzalo Daniela Gisella Bobby Andrea Karen Carolina Augusto Domenico Stefan
  • 11. FINANCE PRINCIPLE #1: Time Value of Money Time Value of Money
  • 12. FINANCE PRINCIPLE #1: Time Value of Money
  • 13. What is the future value of $3000 if you invest that money at 8% for two years? FINANCE PRINCIPLE #1: Time Value of Money
  • 14. FINANCE PRINCIPLE #1: Time Value of Money
  • 15. How long would it take for that money to double? FINANCE PRINCIPLE #1: Time Value of Money
  • 16. FINANCE PRINCIPLE #1: Time Value of Money
  • 17. What you do-- or don’t do-- with your money today, affects you in the future. FINANCE PRINCIPLE #1: Time Value of Money
  • 18. What you do-- or don’t do-- with your time today, also affects you in the future. FINANCE PRINCIPLE #1: Time Value of Money
  • 19. FINANCE PRINCIPLE #1: Time Value of Money Setting important goals and being DISCIPLINED enough to achieve them. The first part of finance is about:
  • 20. FINANCE PRINCIPLE #1: Time Value of Money If you spend your money wisely today, it will pay off in the future.
  • 21. FINANCE PRINCIPLE #1: Time Value of Money If you spend your time wisely today, it will pay off in the future.
  • 22. FINANCE PRINCIPLE #1: Time Value of Money
  • 23. FINANCE PRINCIPLE #1: Time Value of Money
  • 24. FINANCE QUIZ What is the time value of money? And why is this important? Question
  • 25. FINANCE QUIZ A dollar today is worth more than a dollar tomorrow. INVEST! Answer
  • 26. FINANCE QUIZ What is interest? Question
  • 27. FINANCE QUIZ The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. Answer Interest is commonly calculated using one of two methods: simple interest calculation, or compound interest calculation.
  • 28. FINANCE QUIZ What is compound interest? Question
  • 29. FINANCE QUIZ Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage of only the principal amount. Answer
  • 30. FINANCE QUIZ Answer
  • 31. FINANCE QUIZ What is a stock? Question
  • 32. FINANCE QUIZ Answer At some point, just about every company needs to raise capital, whether to open up a West Coast sales office, build a factory, or hire a crop of engineers. In each case, they have two choices: 1) Borrow the money, or 2) raise it from investors by selling them a stake (issuing shares of stock) in the company. When you own a share of stock, you are a part owner in the company with a claim (however small it may be) on every asset and every penny in earnings.
  • 33. FINANCE QUIZ Answer the capital raised by a business or corporation through the issue and subscription of shares. shares of a company that a person
  • 34. FINANCE QUIZ Answer Nevertheless, it's that ownership structure that gives a stock its value. If stockowners didn't have a claim on earnings, then stock certificates would be worth no more than the paper they're printed on.As a company's earnings improve, investors are willing to pay more for the stock.
  • 35. FINANCE QUIZ What is a bond? Question
  • 36. FINANCE QUIZ Answer A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities. Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along with stocks and cash equivalents.
  • 37. FINANCE QUIZ Answer Two features of a bond - credit quality and duration - are the principal determinants of a bond's interest rate. Bond maturities range from a 90-day Treasury bill to a 30-year government bond. Corporate and municipals are typically in the three to 10-year range.
  • 38. FINANCE QUIZ What is a mutual fund? Question
  • 39. FINANCE QUIZ Answer An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
  • 40. FINANCE QUIZ Answer One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital.
  • 41. FINANCE QUIZ What is an ETF? Question
  • 42. FINANCE QUIZ Answer A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.
  • 43. FINANCE QUIZ What are the indexes like NASDAQ, DOWN JONES, S&P 500? Question
  • 44. FINANCE QUIZ What is an IPO? Question
  • 45. WHAT’S AN IPO?
  • 46. FACEBOOK’S IPO
  • 47. FACEBOOK’S IPO