Essay about Investment and Money

Words: 887
Pages: 4

Jaleel Gilliam
Ch. 2-04
02.04 Investing Basics Chart
Use this chart to take notes from the lesson. Some information has been provided for you, but you can add additional details to those sections.
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.
Is an account where a saving note is issued by a bank to a depositor who places funds in savings for a set period. Is a relatively low-risk debt instrument. The potential return is that you reieve a set amount of annual interest on the loan and when the CD contract reaches
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High (Aggressive)—Have a potentially large return relative to other investments but also are considered the riskiest.

Traditional Bank Account Is an account that allows you to deposit and withdraw at will. They don’t make much money, and the bank may charge a fee for these accounts. Can be used with debit cards and checks.

These websites can help you find information about specific investments available.

 Investopedia—Investing

 Market Watch—Getting Started

 The Wall Street Journal—Market Data Center

 Yahoo Finance
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.
Why did you choose these three options?
How do your choices reflect your tolerance for risk?
How do you plan to divide your money between the three investment options you chose? Be sure to include the following terms in your explanation: diversification risk rate of return