What Is Stock Anyway Essay

1048 Words May 26th, 2015 5 Pages
02.04 What is Stock, Anyway—Assignment

Investing Basics
Type of Investment
Description – explain what it is and how it works
Level of Risk and Potential Return – explain.
Real-life example of this investment (name or company)
Minimum investment amount or time?
Easy to start or stop investment?
Discuss.
CD
Certificate of Deposit is a savings note issued by a bank to a depositor who places funds in saving for a set period.
Low Risk because of the low return.
CDs are generally issued by commercial banks and are insured by the FDIC.

Bank of America
CDs require a minimum amount of money to invest. CDs are safe ways to save money but it is hard to get the money out. Bank will charge a fee if money is taken out early. Generally ranges from
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With futures a legal commitment is made to buy a certain amount on a certain date for a particular price.
Traditional Bank Account
In a Traditional Savings or Checking Account, funds are deposited in a bank that the depositor (account holder) can withdraw at will.
Moderate risk because these accounts have the potential for identity theft.
Wells Fargo, American Express, Bank of America all offer traditional bank accounts.
They are easy to start but require a fee for the accounts. You can take out cash easily and are easy to use with debit cards and checks.

Investment Plan
After completing the reading and activities in the lesson, develop your own investment plan. Base this investment plan on your results from the spinner activity on the activity tab.

Choose three investment options from the chart for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions:
Explain how you obtained the money for investment
Congratulations! You win a talent competition with a cash prize of $1,000.

Why did you choose these three options?
Traditional Bank Account, IRA, and MMA. I chose a Traditional Bank Account to help in everyday tasks when I need money, so I can use a debit card. Second I chose an IRA because I need it to help me retire in the future. Lastly, I chose MMA because it is low risk but still makes more money than a traditional bank account.

How do your

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