Course

Essential Standard Objective

Essential Questions

Understand the role of finance in business. 4.03 B2 12% Understand saving and investing options for clients. x How do investors determine appropriate saving and investing options? x What factors should be considered in evaluating saving and investing options? UNPACKED CONTENT

6200/6600 Principles Unit B of Business and Finance 4.00 B2 31%

Principles of Finance

I. Appropriate saving and investing options depend on the investors time and risk tolerance. Saving and investing options are: A. Savings plans 1. Savings account 2. Certificate of deposit (CD) 3. Money market account B. Securities include stock investments, bond investments, mutual funds, and exchange-traded funds. 1. Stock investments include: a. Preferred stock b. Common stock 2. Bond investments include: a. Government bonds i. Municipal bonds ii. U.S. savings bonds iii. Other Federal Securities b. Corporate bonds 3. Mutual funds 4. Exchange-traded funds

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C. Alternative investments options are: 1. Real estate 2. Commodities and futures a. Agricultural b. Gold, silver, and precious metals c. Currency and financial instruments 3. Collectibles II. Factors investors may consider in evaluating saving and investing options are: A. Safety and risk B. Potential yield C. Liquidity D. Taxes

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Summer 2010

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