Opportunity cost is a decision that you have make to give up something for something else.
An example in my life will be when I had to stay home to finish a project instead of going to the
YMCA to swim.
Another example in my life is when I had to stay home and study for a test instead of going to the movie theater to watch a movie.
Sunday, April 5, 2009
Wednesday, March 25, 2009
Compound Interest and the Rule of 72
Compound Interest is unpaid interest that is accumulated on the original principal.
Rule of 72 is a rule that finds the number of years that will double your investment.
What is it about compound interest that inspired Albert Einstein to say "The most powerful force in the universe is compound interest."
Rule of 72 is a rule that finds the number of years that will double your investment.
What is it about compound interest that inspired Albert Einstein to say "The most powerful force in the universe is compound interest."
Tuesday, March 10, 2009
"My Recession Spending"
I can't really alter my own spending habits because I don't have any bad spending habits. I don't really ask my parents for money to buy clothes, games and anything for personally needs. When I need money to buy something for school, something important or if I have to go somewhere
my parents will give me the money. So, every week my parents give me an allowance of $20 dollars and I have to choose to save it or spend it. When I really want something I have to save my money and wait until i get all the money together to buy it. What going to do differently during "The Great Recession" is try not to spend a lot of money, only when I really need it and not on things that i really don't need.
my parents will give me the money. So, every week my parents give me an allowance of $20 dollars and I have to choose to save it or spend it. When I really want something I have to save my money and wait until i get all the money together to buy it. What going to do differently during "The Great Recession" is try not to spend a lot of money, only when I really need it and not on things that i really don't need.
Tuesday, February 24, 2009
My Investment Strategy
My investment strategy for the upcoming stock market contest is to buy stocks that people are going to use during this recession like department stores that sells everything from food, clothing and everyday supplies at low prices. I am also going to buy stock from different parts of the U.S market like technology, gas, energy and etc.. I am not going to buy stocks from the banks. I don't think that I should those stocks right now.
Wednesday, February 11, 2009
Intro to the Stock Market
Answer the following question about the stock market.
What exactly is a stock and why do companies sell stock in the first place?
- Stock is when a company sells shares (ownership) of there corporation or company. Companies sell stock in the first place to raise money for their companies. They might need money to expand, pay off dept, develop new products and for many different reasons.
What is the difference between a public and a private company?
-The difference between a public and a private company is that private companies are privately owned. The private companies don't sell their stock to the public they want to maintain control over their companies and their profits. Public companies sell their stock to the public.
What is the Dow Jones Industrial Average?
-The Dow Jones Industrial Average was invented by Charles Dow in 1896. The DJIA is an average of 30 significant stocks in the United States, which are traded on the New York Sock Exchange and the NASDAQ.
What is a blue chip stock?
- A blue chip is a nickname for a stock that is safe, excellent financial shape and a leader in it's field. Blue chips generally pay dividends and are favorably observed by investors. Two examples of blue chips are Wal- Mart and Coca- Cola.
What is the New York Stock Exchange and the NASDAQ?
- The New York Stock Exchange is a stock exchange based in New York City, New York. It's the largest stock exchange in the world by dollar value of it's listed companies' securities(financial value). The NASDAQ is an American stock exchange. It's the largest electronic screen- based trading market in the United States. It has about 3,200 companies.
What is a mutual fund and how do they operate?
-A mutual fund is an investment company that continually offers new shares and buys existing shares back at the request of the shareholder. They invest in stocks, bonds and other securities(financial value).
What are some of the biggest companies on the stock market, what is the total value of their stock?
-Exxon Mobil(XOM) $384.8 B
Wal-Mart(WMT) $202.4 B
China Mobile Ltd.(CHL) $180.0 B
What is the PE ratio of a stock?
-The PE Ratio (price-to-earning ratio) of stock is a measure of the price paid for a share relative to the annual income or profit. Its the relationship between the stock price and the companies earnings.
What is a stock dividend?
-A stock dividend are payments made by a corporation to its shareholder members.
What exactly is a stock and why do companies sell stock in the first place?
- Stock is when a company sells shares (ownership) of there corporation or company. Companies sell stock in the first place to raise money for their companies. They might need money to expand, pay off dept, develop new products and for many different reasons.
What is the difference between a public and a private company?
-The difference between a public and a private company is that private companies are privately owned. The private companies don't sell their stock to the public they want to maintain control over their companies and their profits. Public companies sell their stock to the public.
What is the Dow Jones Industrial Average?
-The Dow Jones Industrial Average was invented by Charles Dow in 1896. The DJIA is an average of 30 significant stocks in the United States, which are traded on the New York Sock Exchange and the NASDAQ.
What is a blue chip stock?
- A blue chip is a nickname for a stock that is safe, excellent financial shape and a leader in it's field. Blue chips generally pay dividends and are favorably observed by investors. Two examples of blue chips are Wal- Mart and Coca- Cola.
What is the New York Stock Exchange and the NASDAQ?
- The New York Stock Exchange is a stock exchange based in New York City, New York. It's the largest stock exchange in the world by dollar value of it's listed companies' securities(financial value). The NASDAQ is an American stock exchange. It's the largest electronic screen- based trading market in the United States. It has about 3,200 companies.
What is a mutual fund and how do they operate?
-A mutual fund is an investment company that continually offers new shares and buys existing shares back at the request of the shareholder. They invest in stocks, bonds and other securities(financial value).
What are some of the biggest companies on the stock market, what is the total value of their stock?
-Exxon Mobil(XOM) $384.8 B
Wal-Mart(WMT) $202.4 B
China Mobile Ltd.(CHL) $180.0 B
What is the PE ratio of a stock?
-The PE Ratio (price-to-earning ratio) of stock is a measure of the price paid for a share relative to the annual income or profit. Its the relationship between the stock price and the companies earnings.
What is a stock dividend?
-A stock dividend are payments made by a corporation to its shareholder members.
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