2. Basics
• Money without working
• Own a part of a company (assets and earning)
• You get to claim a little bit of what that company
has
3. …
• Management of a company is supposed to
increase the value of the firm for us
(shareholders)
• You’re not liable for any of the company’s debts
• All you hope for is that the shares you got will be
worth more in the future
4. Why do companies get investors?
• At some point every company needs to raise
money to expand
▫ They can borrow money OR sell parts of their
company
7. Bonds
• Income oriented investing
• Lending out money to a company or government
• In return, they give you back your money and a
fixed interest rate
8. Stocks
• Become a part-owner of a business
• Volatile but fun
• High potential returns
