• Mutual Funds
     

    A Mutual Fund is a professionally managed investment security made up of a pool of moneys from many investors for the purpose of investing in stocks, bonds, money market instruments or a combination of those assets.

    The price of the mutual fund is known as the NAV price: Net Asset Value and it is calculated once! (at the end of the day)

    Note:   mutual fund investors do NOT actually own the stocks, bonds, etc., in which the fund invests:  they own shares of the mutual fund itself!

     
    Bonds 
     
    A bond is essentially a loan agreement between the bond issuer and the investor for the purpose of raising money. 
     
    A bond can be issued by a corporation or the government.  
     
    A bond is usually for a fixed interest rate and a set date; called the maturity date, when the loan amount (called the principal) must be repaid by the bond issuer. 
     
    The bond issuer is obligated to pay the bond holder specified amounts of money (interest payments) at specified future dates during the term of the bond.
     
     
     Objectives:
     

    You will be able to define what a mutual fund is, choose one to purchase, and purchase it through the Stock Market Game.

    You will be able to participate in a class group activity that decides which investments (and how much of each)your mutual fund will purchase.  Group will calculate the price per share of the mutual fund when given the value of the fund's investments one year later.  Group will be able to calculate the profit/loss rate of return for their mutual fund.

     

     
     
     
    Wrapping It Up:
     
     
    Students will end this unit by completing an open note assessment.