Tuesday, June 4, 2013

Investing 101!!

   FRANCHISE: I chose Mcdonalds to represent a franchise because it is an example of a fast food restaurant that has an extremely successful product or service.


BULLS AND BEARS: I chose an image of a glass half full and a glass half empty to represent the bulls and bears because the bulls are positive towards the market, believing that it will rise, while the bear thrives off of the market being negative.
 

UNDERWRITER/ UNDERWRITER/ GOING PUBLIC: I chose an image of Fred Meyer to represent an underwrite/underwriter/ going public because it is an example of a middle man between an issuer of a security and investing public.

 BOND: I chose an image of an I.O.U. because essentially that is what a bond is, a debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing.




STOCK: I chose a puzzle to represent stock because each puzzle piece represents a proportional share in the corporations assets and profits.



SELLING SHORT: I chose a lottery ticket to represent selling short because it is an example of  paying a considerable amount of money and not necessarily making a profit off of it.



PRIMARY MARKET/ SECONDARY MARKET: This liability waver represents the security that is purchased directly from the issuer.