Contents page:
compounding it…
What makes investing your money so attractive is the idea of the time value of money. Basically, a dollar earned today is worth much more in the future because it can earn interest until it’s used. It gets even better. Once you have invested, your interest earns interest, a concept called compounding.
Broker definitions…
Don’t let the terms ‘broker’, ’stock broker’, ‘account executive’ or registered representative’ confuse you. These people all work for full-service brokerage firms and do basically the same job - sell investments. Eg. of full service brokerage: Merill Lynch, Paine Webber, Prudential Secutirites, Salomon Smith Barney Eg. of discount brokerage: Charles Schwab, Fidelity Investments, Quick and Reilly
stock exchange…
is a public market place where shares of a company’s stock are bought and sold. Because a company wants the stock to be available to the widest number of people, it applies to be listed with an exchange. The exchange measures the company by its own criteria such as overall stability, in the number of shares the company will sell and the price of the shares. Once accepted, the company pays a fee to the exchange to get and remain listed.
A stock’s performance is affected by many ways…
types of stocks…
swindlers and schemers
some questions to separate good offers from the bad ones (phone calls from brokers):
Investment risks…
main categories of Mutual Fund:
Bonds…
Bonds are loan agreements made between you and a business or a government organisation. Basically, IOUs, the borrower issues a certificate promising to pay the loan back by a particular date. The borrower also agrees to make regular interest payments of a predetermined amount. When a company needs money for growth, they have a few options. If they don’t ahve enough profits to plow back into the business, they can sell off portions of ownership through the stock, or they can borrow money.
bond frauds…
Types of Insurance…
Estate planning …
Estate planning is the creation of a definite plan for managing your wealth while you’re alive and distributing it after your death. When we talk about an estate, it include:
4 basic estate plannign methods:
Kids and Money
Older children become very interested in board games that include money as a tool to use to win the game. Even though play money isused, oftentimes such play is a child’s first introduction to money as a tool that can realise financial objectives and can be used to further their momentum towards acquiring personal financial strength. Children can also be taught about investing even at a young age. For eg, how many children know that you can buy little pieces of companies like Coca-Cola and Disney for as little as $25 per month??
women and money
once women clear that mental block in their minds that associates money with difficulty, the doors to enlightenment will fly open and they will be ready to take responsibility for their financial destiny women only need to spend a little time learning about the financial world before they realise that it isn’t so hard after all. … … “I realised that if you taught the woman of the household the financial management process (that same woman who makes 80% of all retail purchases), then you would teach the whole family.”