a kid’s guide to stock market investing pdf

a kid’s guide to stock market investing pdf插图

How can I teach my teenager about the stock market?

Register with High School Financial Planning, and check out Module 4 on investing, which is an entire lesson plan around investing. There you have it – some awesome, and free stock market worksheet PDFs for students (both kids and teens) that will help them understand the stock market. Much better than I did at their age, anyway!

Do kids need to lose money to invest in stocks?

But don’t worry – they needn’t lose any money. Here are 6 free stock market game for students, and 9 investing board games for kids. Teaching kids about stocks and how to invest is such a worthy cause – it’s one of the best ways to ensure they’ll have a solid financial future.

Is there a free stock market worksheet for high school students?

Money Working for You Stock Market Lesson Plan Register with High School Financial Planning, and check out Module 4 on investing, which is an entire lesson plan around investing. There you have it – some awesome, and free stock market worksheet PDFs for students (both kids and teens) that will help them understand the stock market.

What is the best way to teach students about investing?

Psst: one of the best ways to teach students about investing and the stock market is to actually have them play it. But don’t worry – they needn’t lose any money. Here are 6 free stock market game for students, and 9 investing board games for kids.

What is Stock Investing?

Most people have several sources of income, both primary and secondary.

Stocks vs Real Estate Investing

Two of the most preferred methods of investing are stocks and real estate.

How to Start Stock Investing

If you’re looking to start investing in stocks, there are several steps that you need to take to get started on the journey.

Dividend Stock Investing

As mentioned earlier, dividends are a share of the profits that a company pays out to its shareholders.

Stock Investing Apps

There are numerous apps that you can use to invest in the stock market.

Penny Stock Investing

Penny stocks are a form of high-risk, high-reward investment available to investors who are more risk-friendly and willing to research.

Lastly

If you have savings, keeping them in the bank is definitely a bad idea because you will lose money due to inflation.

What is practical money skills?

Practical Money Skills offers both a teacher’s guide and student worksheets talking about what the stock market is, plus has them work through the price to earnings ratio for real-life stocks. This is Lesson #21, FYI.

How many lesson plans are there for the financial crisis?

This resource has 8 lesson plans to teach financial crisis, specifically by comparing the financial crisis of 1907 to the financial crisis of 2007.

What is it like to read a stock table?

At first, reading a stock table is like trying to read hieroglyphics at a museum – it just isn’t intuitive.

Why should we teach kids about stocks?

Teaching kids about stocks and how to invest is such a worthy cause – it’s one of the best ways to ensure they’ll have a solid financial future.

How many pages are there in the Teacher’s Guide?

You’ll definitely want to download and read the 22-page Teacher’s Guide that goes along with it.

Do you have to be a stock market wizard to teach?

You don’t have to be a stock market wizard to teach your students , thanks to some great stock market lesson pdfs, lesson plans, and worksheets.

What is a Stock?

The stock is an old form of investment that works surprisingly simply; a company issues securities that embody a piece of the company itself.

What is the stock market?

The stock market is the market where companies issue securities to cover their financing needs. Investors who buy such securities become shareholders of the company and receive a dividend. The size of the dividend depends on the company’s profits.

How many principles are there in the book The Stock Market?

The book details six primary principles for investing in the stock market:

Why do stock prices change?

In theory, an increase in a company’s stock price results from improved economic value and potential also called “fundamentals”. In reality, stock prices change due to various causes; only a few can be foreseen as an investor.

Why is it important to have a functioning stock market?

An efficient and functioning stock market is considered critical for economic development, as it offers companies the opportunity to collect capital from investors.

How does the stock market work?

Just like any financial market, the stock market operates based on the system of supply and demand. If you buy shares, there is hope that other investors will also find interest in acquiring shares in the same company. If the popularity of a stock increases, buyers will increase the bids to necessarily acquire shares of it, thereby increasing the selling price.

Why do shareholders receive dividends?

Shareholders are involved in the company’s success and regularly receive a dividend, provided that the company generates profits. At the end of a financial year, a company can make such dividends as bonus payments. The dividend is an important part of an investor’s return. It is based on the company’s earning power, economic situation, and dividend policy.

What is dividend reinvestment plan?

dividend reinvestment plan is a low-cost way of reinvesting the dividends you receive from a company whose shares you own. When you purchase shares of a company with a so-called DrIP, you can direct the company (when it holds your shares) to reinvest your quarterly dividends for little or no charge. DrIPs are particularly helpful to small investors because the plans allow investors to buy fractional shares. DrIPs also allow you to make additional invest-ments in a company’s stock, either on a regular or occasional basis. not all com-panies have DrIP plans; to find out whether a company offers one, go to its Web site or contact the company’s investor-relations department.

What is book value in stock?

in many others. Book value, also known as share-holder equity , is essentially a company’s assets minus liabilities. Divide that number by the average number of shares outstanding to arrive at book value per share, then divide the share price by book value per share to arrive at a stock’s price-to-book-value ratio (P/B). Compare a stock’s P/B to that of similar companies to get a sense of relative value.

What is preferred stock?

Preferred stocks have elements of both stocks and bonds. As with common stock, companies issue preferred shares. Preferred stock ranks higher than common stock in the company’s capital structure, which means that preferred shareholders are paid dividends first and have a better chance than common shareholders of being paid off if the company goes into bankruptcy. Bond investors, how-ever, have a higher claim on a company’s assets than holders of preferred stock.Preferred shares resemble bonds in that dividend payments are typically high but fixed. As such, preferred shareholders cannot bene-fit in the growth of the company, but neither are they hurt if the company stumbles a bit. In fact, preferred-share prices tend to behave like bond prices, rising as interest rates fall and sinking as interest rates rise. But unlike bonds, most preferred stocks do not have maturity dates, and the issuers of the shares (unlike borrowers paying interest to bond-holders) are under no legal obligation to pay dividends to investors.

What is technical analysis?

This is actually a third school of stock picking. Technical analysts make decisions based on observations of historical market and stock trends and current data. They study patterns of price movements and trading volume of the market and individual stocks, looking at such things as moving averages and relative strength. Practitioners of technical analysis pay little or no attention to fundamentals—they may not even care what business a com-pany is in. Many academics scoff at technical analysis, but the technique has many passion-ate advocates.

What is the P/E ratio?

Price-earnings ratio . The P/E ratio is perhaps the best-known and most widely used yardstick to assess the value of a stock. The numerator, P, is the current market price of a stock. The denominator, E, is the company’s earnings per share, which is calculated by dividing after-tax profits by the average number of outstanding shares of common stock. For example:

What is growth stock?

Growth stocks are shares of companies with the potential to consistently generate above-average reve-nues and profit growth. These companies tend to rein-vest most or all of their earnings in their businesses and pay out little or none of their profits to sharehold-ers in the form of dividends. Growth companies ex-pand faster than the overall economy, yet you can sometimes find these companies in mature industries. note that even fast-growing companies are not neces-sarily good investments if their shares are overvalued.Cyclical stocks are shares of companies whose sales and earnings are highly sensitive to the ups and downs of the economy. When the economy is per-forming well, cyclical companies tend to shine. A con-tracting economy typically hammers the sales and

What is an IPI?

The Investor Protection Institute (IPI) is an indepen-dent nonprofit organization that advances investor protection by conduct-ing and supporting unbiased research and groundbreaking education programs. IPI carries out its mission through investor educa-tion, protection and research programs deliv-ered at the national and grassroots level in collaboration with state securities regulators and other strategic partners. IPI is dedicated to providing innovative investor protection programs that will make a meaningful differ-ence in the financial lives of Americans in all walks of life and at all levels of sophistication about financial matters. For additional infor-mation, visit www.iInvest.org.

What is aggressive investment?

In general, aggressive investment strategies – those that shoot for the highest possible return – are most appropriate for investors who, for the sake of this potential high return, have a high risk tolerance (can stomach wide fluctuations in value) and a longer time horizon. Aggressive portfolios generally have a higher investment in equities.

What is mutual fund?

mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are pooling your money with a number of other investors, which enables you (as part of a group) to pay a professional manager to select specific securities for you. Mutual funds are all set up with a specific strategy in mind, and their distinct focus can be nearly anything: large stocks, small stocks, bonds from governments, bonds from companies, stocks and bonds, stocks in certain industries, stocks in certain countries, etc.

What is bonding in finance?

Grouped under the general category called fixed-income securities, the term bond is commonly used to refer to any securities that are founded on debt. When you purchase a bond, you are lending out your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out.

What are the factors that influence an investment decision?

Generally speaking, investors have a few factors to consider when looking for the right place to park their money. Safety of capital, current income and capital appreciation are factors that should influence an investment decision and will depend on a person’s age, stage/position in life and personal circumstances. A 75-year-old widow living off of her retirement portfolio is far more interested in preserving the value of investments than a 30-year-old business executive would be. Because the widow needs income from her investments to survive, she cannot risk losing her investment. The young executive, on the other hand, has time on his or her side. As investment income isn’t currently paying the bills, the executive can afford to be more aggressive in his or her investing strategies.

What is the Greek maxim inscribed on the Temple of Apollo’s Oracle at Delphi?

Investors can learn a lot from the famous Greek maxim inscribed on the Temple of Apollo’s Oracle at Delphi: "Know Thyself". In the context of investing, the wise words of the oracle emphasize that success depends on ensuring that your investment strategy fits your personal characteristics.

Who is Melanie in the book "Investing"?

For our example, let’s look at a fictional investor named Melanie. Melanie is a twenty something who is relatively new to investing. Melanie knows that she wants to invest, but isn’t sure just how to do it. Her knowledge of finances is good, but she has no desire to spend her free time poring over financial statements (or losing sleep because of her investments).

Is there a law on investing?

An important fact about investing is that there are no indisputable laws, nor is there one correct way to go about it. Furthermore, within the vast array of different investing styles and strategies, two opposite approaches may both be successful at the same time.

What is the most important rule in investing?

Perhaps the most important rule is learn, learn more, and then keep learning. !e fun thing about investing is that the markets are always di"erent and companies are constantly changing. Never stop learning about businesses, never stop learning from other great investors, and never stop learning from your own mistakes. Humility and an eagerness to learn are two traits found in all of the great investors. Even Warren Bu"ett credits his partner Charlie Munger with teaching him that itÕs better to buy a great company at a fair price than a fair company at a great price. Ò!e game of life is the game of everlasting learning. At least it is if you want to win.Ó -Charlie Munger

What is the rule 2 of investing?

RULE 2 : GOOD COMPANIES MAKE GOOD INVESTMENTS

How can a company grow revenue?

Another way a company can grow revenue is by being in a market where the market itself is growing. For instance, if the market (i.e., the number of smartphones sold) grew by 10% from 1.2 billion phones to 1.32 billion phones, even if Apple retained a 50% market share, it would still sell 10% more phones.

What is investing in a stock?

Investing in a stock is buying a piece of the company. Search the internet to match the brands with the company (stock) that owns it. What stock ticker (example AAPL for Apple) would you buy if you wanted to invest in the growth of the following products?

How much does the stock market return?

Scary, right? It goes up and down. !ere are times when it can decline by 20% in a short period of time, inducing panic and scary headlines. But over time, the stock market grows with how fast corporations grow. In every ten year period, the stock market earns you 8-10% returns. In fact, over the last century, the S&P 500 (the largest 500 companies in the US) have returned 9.8% per year. Average Annual Return: 9.8% Amount Accumulated in 50 Years: $1,359,199 So does it really matter where you put your money? Uh, yeah! It makes all the di"erence in the world. In fact, the more money that you can put in the stock market early, the more the magnifying e"ect of Òcompound interestÓ or ÒcompoundingÓ can work in your favor. ÒCompound interest is the eighth wonder of the worldÓ -Albert Einstein Now, I know what youÕre thinking. If going from 3% to 10% return gets me an extra million dollars, what does getting a 20% return do? Warren Bu"ett, the legendary investor, for example earned 30% return over a period of 30 years. (called the famous Ò30/30Ó).

What is the goal of young investors?

Welcome Young Investors! It is our goal to make you master investors. Many of the lessons you will learn have been used by successful investors over several generations. You will notice that a recipe for success is easy to follow but is actually followed by few. LetÕs start with a question:

Do you put all your EGGS in one basket?

RULE 6 : DONÕT PUT ALL YOUR EGGS IN ONE BASKET, BUT DONÕT HAVE TOO MANY BASKETS, EITHER

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