1. Stock Basics

2. Basics
• Money without working
• Own a part of a company (assets and earning)
• You get to claim a little bit of what that company
has

3. …
• Management of a company is supposed to
increase the value of the firm for us
(shareholders)
• You’re not liable for any of the company’s debts
• All you hope for is that the shares you got will be
worth more in the future

4. Why do companies get investors?
• At some point every company needs to raise
money to expand
▫ They can borrow money OR sell parts of their
company

5. Compound Interest
START EARLY IN LIFE!

6. Diversification

7. Bonds
• Income oriented investing
• Lending out money to a company or government
• In return, they give you back your money and a
fixed interest rate

8. Stocks
• Become a part-owner of a business
• Volatile but fun 
• High potential returns

9. Helpful websites:
• http://www.investopedia.com/university/begin
ner/beginner5.asp
• http://www.investopedia.com/university/begin
ner/beginner2.asp
• http://www.investopedia.com/university/stocks
/stocks1.asp
• http://www.investopedia.com/university/simul
ator/