The document discusses various savings and investment options including savings accounts, certificates of deposit, money market accounts, mutual funds, stocks, real estate, and commodities. It notes that compound interest allows savings to grow as interest is earned on previous interest. The document also defines liquidity, and describes common stock and preferred stock as well as major stock exchanges like the NYSE and NASDAQ.

1. Marissa Doria
Block 3

2. Savings
 Storage of money for future use

3. 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

4. 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

5. 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%

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

7. Common Alternative Investments
 Real Estate
 Commodities
 Collectibles

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

9. 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

10. 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

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

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