6.1 learning

By Mattk_45
  • 1 CE

    Understanding Net Worth

    ASSETS – LIABILITIES = NET WORTH
    Some possessions are assets, but some don't earn or make passive money. Cars drop in value the second it’s driven off
    Liabilities or debt are things such as:
    • A home mortgage
    • Credit card balances
    • A car loan
    • Hospital and other medical bills.
    • Student loans
  • 1 CE

    Understand the Risk–Return Relationship

    When you are saving and investing the higher the amount returned the higher the risk. Less risk investments will expect a smaller return. Savings accounts are covered by the FDIC up to $250,000. The interest paid on your savings will be less than other types of investments.
    Investment in a stock is not insured. The money you invest could forever be lost and there is a real risk, but also a very high rewards. It is all dependent on the amount of risk you're willing to take
  • 1 CE

    Factors that Can Affect Stock Prices

    • news on earnings, profits, and future estimated earnings
    • announcement of dividends
    • introduction of a new product or a product recall
    • securing a new large contract
    • employee layoffs
    • anticipated takeover or merger
    • a change of management
    • accounting errors or scandals
    • Economic outlook
    • Economic and political shocks
    • Changes in policy
    • Value of the currency