Couple of questions to answer today--answer them with the following format.....1.) 2.) 3.) so we know your answers match up with the questions and answer in complete sentences.
1.) Explain the comment in the book that "Risk decreases with time"
2.) Think about our stock market competition and then list the one stock that you have the most confidence in. If you went away from diversification then what stock would you put all your money into? (BTW-we all know that this is not wise to do, but pick one anyway)
and then...........Explain/Justify why you picked the company that you did--try to convince us that your stock is the best!!!!
3.) In the future, do you see yourself buying stocks or saving in a bank account? Explain your choice
4.) Give an example of the Rule of 72---"The Michael Jordan of financial concepts".....show us you have an understanding of how it works....give an example.
5.) Would you encourage your kids (future!) to get involved in stocks?
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1) You could put in like $1 today then goes down to .50 cents the next then to $ 2 dollars the next day so wait out the risk and usually the market will go back up.
ReplyDelete2) I have the most confidence in my apple stock. It has earned me the most money so far. If I had to put all my money into one it would be apple. Apple has been earning me money so I would like to have more money and be higher in the contest.
3)I would have most of my money in a saving account in the bank. I am not good at stocks so I would not want to risk much of my money in them. I would have just a little bit of my money in stocks that are known to go up. I would not want to risk my money. I would rather save it.
4) If you bought the stock in year one at $20 and held it to year six, you doubled your money to $40 and, therefore earned a 12% compound return.
5) I would let them try but give them advice about how you could lose all your money. So to research the stock before investing and don't invest all your money in one. Also be careful on what stocks you invest in. Go to the ones that are well known to do good.
1.) the longer you wait the % decreases each year so after so many years you will gain money and that will increase
ReplyDelete2.) Apple, they have had a steady increase since I have bought them the value is high and the increase in money has gone up.
3.) Bank account because I don't think I would pay much attention to the stocks so I wouldn't know a good time to buy and sell so I would just put it in a bank account so I can put in or take out money whenever needed.
4.) 6% intrest rate would take 12 years to double, to know intrest rate divide 12 into 72. intrest rate divided into 72 equals
5.) Yes
Risk decreases over time means that the longer you let your investment sit the lower your risk will be. From 1926 10 1995 in a five-year period the maximum decrease was 12.5% but in a twenty-year period the maximum decrease was 3.1%.
ReplyDeleteIf i had to pick one stock to put all my investments in I would pick Under Armour because usually it's up in the market and not down. It's also a very popular sports brand. I don't think people will ever stop buying under armour products.
I think in the future I will put most of my money in a savings account and invest a little in the stock market.
The rule of 72 deals with interest rates for savings accounts. According to the rule of 72 you take 72 divided by the the percent of your interest and that's the number of years it will take your money to double. An example is your interest in 8%. So you take 72/8 and that equals 9. At a 8% interest rate it will take 9 years for your money to double.
I would encourage my future kids to invest some of their money. But they need to do research before they invest.
1. The longer you wait, the chance that it will rise is greater
ReplyDelete2. I would put all my money on Amazon, it may be down now, but it will rise to dominance soon.
3.Yes i will invest because it is a good way to make money.
4. If you had a 12% compound return on 50 dollars, in six years it would be 100
5. I would because it is a good way to get involved in our economy and to make money
1) If you wait through the up and downs in the market you will eventually end up ahead
ReplyDelete2)BestBuy because has had a steady increase
3)No because I would remember them
4)Interest Rate divided by 72 equals number of years it takes money to double...6% interest rate take 12 years to double
5)Yes
1) wait long enough and you'll be in the green
ReplyDelete2)Ford has had a steady incline
3)yes i would invest but you have to pay attention
4)you would double your money
5)yes
1. the markets will go up if you wait long enough
ReplyDelete2. Apple. Technology is always increasing and it is a successful company.
3. Yes, because it is a good and easy way to make money.
4. Buy stocks in year one at $20 and held it for six years you doubled your money to $40 and earned a 12% compound return.
5. yes
1.) If you wait out the ups and downs, you will have a better chance of getting money.
ReplyDelete2.) Apple because it keeps improving their products and has a constant increase.
3.) I see myself saving money in a saving account because it is safer. I don't have to worry about any downs. I don't think I like to take risks when it comes to money.
4.) You take the interest rate and divide it by 72 and that's how many years it will take for it to double.
5.) I don't know very much about stocks, but I would encourage them to try it. They might gain a lot of money and they have the chance to learn about stocks and investing money.