By kidseconposters.com Companies issue stock to raise money to finance business operations.  Stock represents ownership in a company.  Thus, if you are a stockholder, you own part of a company.  A stock certificate shows how many shares you own.

By kidseconposters.com For individuals, saving is the part of one’s income that is not spent. People often place their savings in banks and credit unions, which in turn lend the money to businesses and other individuals. Sometimes people use their savings to purchase financial securities, such as stocks or bonds. It is important to save regularly, especially for things like education, retirement, and financial emergencies.

By kidseconposters.com Investing in capital goods occurs when businesses purchase capital goods in order to increase the productivity of workers.  This investment always involves some risk.

By kidseconposters.com Financial institutions encourage people to save by offering interest on savings. They loan these savings to businesses and consumers. Banks compete with one another to attract savers and borrowers. The goal of the bank, like any business, is to make a profit.

By kidseconposters.com People often put their savings into financial investments like stocks, bonds, or certificates of deposit. Some of these are more risky — but have the potential of a much better rate of return — than less risky investments. Research the financial investments below. Rate each according to risk and return — with 10 high and 1 low. Click here To View More!