Compound interest basically occurs when you invest money in an account and do not take it out. The interest that you receive at the beginning of the investment starts to gain interest and so on and so on. This means that you will make more off the investment over time because the interest sits in the account and continues to grow.
A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.
Friday, March 26, 2010
Friday, March 12, 2010
Opportunity Costs
In your own words, explain what economists mean when they talk about "Opportunity Costs". What are opportunity costs? Give some examples. And give some examples from your own life. How do, or how will, opportunity costs affect you?
An opportunity cost it is something that is given up for something else. An opportunity cost is applied dead o within the stock market. You are taking your chances on a certain stock over other , and not knowing what might happen. A stock you buy goes down, and the stock you thought of buying goes up. An opportunity cost to me is a gamble between time and money most of the time.
When economists refer to the opportunity cost of a resource, they mean the value of the next-highest-value alternative use of that resource. You spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.
An opportunity cost it is something that is given up for something else. An opportunity cost is applied dead o within the stock market. You are taking your chances on a certain stock over other , and not knowing what might happen. A stock you buy goes down, and the stock you thought of buying goes up. An opportunity cost to me is a gamble between time and money most of the time.
When economists refer to the opportunity cost of a resource, they mean the value of the next-highest-value alternative use of that resource. You spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.
Tuesday, March 2, 2010
My Checkbook Budget
| Rent: | I am going to rent a 1 bedroom apt.In Bronx for $940.00 per month |
| Health Club: | $80.00 per month |
| Subway Pass: | $89.00 per month |
| School Loan: | $69.00 per month |
| Phone,Cable, Internet: | $100.00 per month |
| Car Payment: | NA |
| Car Insurance | NA |
| Gasoline: | NA |
| Car maintenance: | NA |
| Parking: | NA |
| Electricity/Gas | $101.00 per month |
| Food - dining in: | $200.00 per month |
| Food - dining out: | $100.00 every 2 week |
| Clothes and Shoes: | $50.00 per month |
| Dentist | $30.00 per year |
| Trips-Vacations: | $100.00 per year |
| Gifts: | $29.99 Moms birthday One Dozen Long Red Roses |
| Saving/Investing: | $120.00 per month |
| Luxury spending (concerts, vacation, etc.) | NA |
| Hair/Beauty: | $10.00 per month |
| Other: | NA |
Monday, March 1, 2010
My Investment Strategy
My investment strategy is to get a good company that rises fast most likely a Darden Restaurants or BJs wholesale club.The BJs day low is about $35.88 and day high is about $36.71 the BJs average volume is 966,400. I also need to stay on a budget because I only have 3 months and only have $5,000 to start so I have to buy less cost company that performance well and before I start buying a stock market I need to research on which stocks I want to buy and use my strategy that I'm still using is looking at the charts of the different stocks.
Friday, February 5, 2010
Intro. to the Stock Market
Q. What exactly is a stock and why do companies sell stock in the first place?
A. A stock market is a public market a loose network of economic transactions not a physical facility or discrete entity for the trading of company stock and derivatives at an agreed price these are securities listed on a stock exchange as wall as those only traded privately.
Q. What is the difference between a public and a private company?
A.The different between a public and a private company is that public company is one whose stock is traded by the public.
Q. What is the Dow Jones Industrial Average?
A.The Dow Jones Industrial Average, also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is one of several stock market indices created by Wall Street.
Q. What is a blue chip stock?
A. A blue chip is the nickname for a stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field.
Q. What is the New York Stock Exchange and the NASDAQ?
A. A stock market is a public market a loose network of economic transactions not a physical facility or discrete entity for the trading of company stock and derivatives at an agreed price these are securities listed on a stock exchange as wall as those only traded privately.
Q. What is the difference between a public and a private company?
A.The different between a public and a private company is that public company is one whose stock is traded by the public.
Q. What is the Dow Jones Industrial Average?
A.The Dow Jones Industrial Average, also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is one of several stock market indices created by Wall Street.
A. A blue chip is the nickname for a stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field.
Q. What is the New York Stock Exchange and the NASDAQ?
A. NASDAQ is run mainly on-line and NYSE actually has a building where the trades take place.
Q. What is a mutual fund and how do they operate, why can they be good?
Q. What is a mutual fund and how do they operate, why can they be good?
A. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in Stocks, Bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually.
Q. What are some of the biggest companies on the stock market (in total value of their stock?
Q. What is the PE ratio of a stock?
A. The most common measure of how expensive a stock is.
Q. What is a stock dividend?
A. A stock dividend is a dividend that is paid to shareholders in the form of additional shares of stock instead of cash.
Q. What are some of the biggest companies on the stock market (in total value of their stock?
- General Electric Company
- Wal-Mart Stores
- con-Edison
- Apple
- iPath S&P GSCI Crude Oil Ttl Ret Idx ETN (OIL)
- Nicor Inc. (GAS)
- Google Inc. (GOOG)
Q. What is the PE ratio of a stock?
A. The most common measure of how expensive a stock is.
Q. What is a stock dividend?
A. A stock dividend is a dividend that is paid to shareholders in the form of additional shares of stock instead of cash.
Wednesday, February 3, 2010
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