september 17 th 2012. common cents investment group september, 2012 agenda membership investopedia...
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Common Cents Investment GroupSeptember, 2012
Agenda
Membership Investopedia Stock Ownership Dollar Cost Averaging Funds Choosing the right broker
Common Cents Investment GroupSeptember, 2012
Membership
Cost is only $20 for the whole year! Benefits:
Member of a very beneficial and informative club that will inevitably be valuable in your future
A network of friends who share a similar interest in investing and personal finance
A virtual portfolio challenge that will strengthen your confidence in investing
$20
Common Cents Investment GroupSeptember, 2012
Membership
Benefits: Possibly T-Shirts? Resume booster! Leadership opportunities And of course…Free pizza & Pop!
Common Cents Investment GroupSeptember, 2012
Membership
Full Membership requires: Member has attended at least 2 CCIG
meetings Member has paid $20 club fee
Common Cents Investment GroupSeptember, 2012
Investopedia
A year long virtual investment challenge on www.investopedia.com
The winner at the end of year wins a cash prize!
Each participant will have: $100,000 of virtual cash Until the end of spring semester to trade The ability to view their own trade history as well as the
trade history of other players Great resources at their access to do research on
investments
Common Cents Investment GroupSeptember, 2012
Investopedia
How to join: Create an Investopedia account (easy) Click on Simulator on the home page
Common Cents Investment GroupSeptember, 2012
Investopedia
How to join: Search “CCIG OSU 2012” and select “Join”
Common Cents Investment GroupSeptember, 2012
Investopedia
How to join: Game Password: ******** Password will be given to official members
Common Cents Investment GroupSeptember, 2012
Investopedia Presentation…
Here
Common Cents Investment GroupSeptember, 2012
Stock Ownership
What does it mean to own a stock? Share of stock: A security representing fractional
ownership in a firm and a claim on its net assets and earnings.
Value of stock changes with market Voting rights Do many things with stocks:
Buy (hold long positions) Sell Short selling (short position) Cover short More on this later…
Common Cents Investment GroupSeptember, 2012
Dollar Cost Averaging
An investment strategy where you put equal amounts of money into an investment periodically
Purchase more shares when prices are low, and less shares when prices are high – overall increase in portfolio value
Common Cents Investment GroupSeptember, 2012
Funds
What is a fund? A collection of stocks, other equity and
debt instruments Can track a particular index (such as the
Dow Jones or S&P 500) Diversification
“It’s the only free lunch”
Common Cents Investment GroupSeptember, 2012
Funds
Indexes Guaranteed market rate of return Diversified Low expenses Usually tax efficient Easy to build a portfolio based on your risk
tolerance Management Fee
2% or more per year Lower for ETF’s
Common Cents Investment GroupSeptember, 2012
Funds
Index Mutual Funds Higher minimums Better for small, frequent purchases Only priced and traded at the close of the
day Examples:
Vanguard Fidelity Blackrock Janus
Common Cents Investment GroupSeptember, 2012
Brokers
Different brokers are good for different things
Next week we will discuss the differences and our personal preferences
A few websites to research different brokers http://www.stockbrokers.com/2012-online-
broker-review.html http://www.stocktradingtogo.com/compare-
online-brokers/