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How to Properly Invest Its Your Money Make the Most of It

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What are Stocks? Literally pieces of a company You pay for the price of a share (1 stock) However, this price changes each day So, your goal is to buy when the stock is cheap and sell the stock once it increases in value In other words, the companys value has increased a lot. Things to keep in mind: Uncertainty in a companys future hurts stock values Often, world events also positively or negatively affect stock values Example: Europes financial crisis caused United States stocks to decrease in value across the board

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Background on Investing in Stocks Many Americans invest in stocks without understanding that they can invest without taking a risk at all! Theres a trick to investing A LEGAL trick If you use it, you can safely gain money over a long period of time with an average return more than most other options Even better than investing in mutual funds, where you have to pay private managers large fees to pick the stocks Therefore, I challenge all of you to beat me (and yourselves). I will use the trick, and you will invest as youd like.

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Rules Each person gets $5,000 fake money to invest and fills out the sheet (example on next slide) You cant go over the $5,000 However, whoever makes the most over their initial investment wins So, if I invest $4,700 thats OK Well check back every once in a while to see how our stocks are doing Ill update a leader board on the board Ill bring more financial advice in from time to time Remember: always do what you want with your money The information I provide is simply something thats worked often for financial professionals (and Harvard Professors)

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New Stock Value # Shares Owned $ Gained / Lost New Stock Value # Shares Owned $ Gained / Lost New Stock Value # Shares Owned $ Gained / Lost New Stock Value # Shares Owned $ Gained / Lost Companies Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 FINAL $ LOSS / GAIN

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Companies to choose from (seniors): Nike$91.15 Target$63.92 Apple $604.00Casio Microsoft$28.21 Google$675.15Coke$37.04 McDonalds$86.71 Coach$55.89 Costco$96.94 Pepsi (AKA YUM!) $68.98 Starbucks$45.87 Doritos Pringles (AKA Kellogg) $52.90

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Companies to choose from (freshman): Starbucks $45.87Subway Jack in the Box$25.67 Apple $604.00 Food City Kroger (AKA Frys) $25.18 Microsoft$28.21 Panda Express Chipotle$251.52 Raytheon$ 55.71 Diary Queen (AKA Berkshire Hathaway) $86.66 McDonalds$86.71 Verizon$44.73 UPS $73.02

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Advice ( The Plastic Trap) First, DONT fail to pay your credit card OR ANY other means of debt (like phone bill or store bill, etc.) EVEN if it is only $0.01 Know why? Deregulation Do credit scores exist? Technically Next time: Why college is affordable B.A. worth $2.1M Over high school Adapted from the Wikimedia Commons file Smartcard2.png http://en.wikipedia.org/wiki/File:Smartcard2.png