Economia

USE OF MONEY FOR FUTURE PROFIT, IT MEANS OPTIMIZE RETURN . NOT ONLY TO MAXIMIZE THE INVESTOR’S PROFIT.

MONEY PLACEMENT = MONEY INVESTMENT
PLACE MONEY IS JUST TO PUT MONEY .
INVEST MONEY = IT IS CHOOSING FROM SEVERAL ALTERNATIVES AND MAKING A DECISION.

INVESTMENT = USE OF MONEY FOR FUTURE PROFIT BY CHOOSING FROM SEVERAL ALTERNATIVES AND MAKING A DECISION BY OPTIMIZING RETURNS.PORTFOLIO.-All the investments held by a person or organization

Bond Market A bond is a loan and you are the lender. Who's the borrower? Usually, it's either the U.S. government, a state, a local municipality or a big company like General Motors. All of these entities need money to operate -- to fund the federal deficit, for instance, or to build roads and finance factories -- so they borrowcapital from the public by issuing bonds. These entities promise to pay the money back with interest.

TYPE OF BONDS
← U.S. GOVERNMENT BONDS
U.S. Treasury bills -- maturities from 90 days to one year
U.S. Treasury notes -- maturities from two to 10 years
U.S. Treasury bonds -- maturities from 10 to 30 years
← MUNICIPAL BONDS
← CORPORATE BONDS
← ZERO COUPON BONDS
←Stock is generally used as an uncountable noun. Share is countable. A share is a unit of stock.
← Stock is divided into units, which are called shares. There is no other type of unit.
← This means that a share of stock is something like a bottle of milk or a loaf of bread.
E.g. I own stock in Citigroup and Ford. I own almost 1,000 shares of Citigroup stock, and about 675 shares of Fordstock.

Shareholder = stockholder

Investment

← STOCK = OWNERSHIP
You get a piece of every desk, contract and trademark in the place.
Better yet, you own a slice of every dollar of profit that comes through the door. The more shares you buy, the bigger your stake becomes.

The time line
destroys the equilibrium law, because life is only possible without it.
The time linegives us the opportunity of a free future, where the past time becomes a need that allows us to change.
The time line is the hope that shows us the importance of current conditions are very important to forecast next events

Commercial bank.- An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts,such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses.

Investment banks
← An institution which acts as an underwriter or agent for corporation issuing securities. Most also maintainbroker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits.
← This banks help companies and governments to raise money by issuing andselling securities in the capital markets . They give other services for clients, such as the trading on derivatives, fixed income, foreign exchange, commodity, and equity securities.

What is saving MONEY?
← It is : store money away instead of just spending it.
← Economizing, cutting costs, preserving money for future use.
← In economics you will say :
Personal disposable incomeminus personal consumption expenditure or

S= Y- C

[pic]

|Y= $1200 |MONTHLY |  |
|Y= $14400 |YEARLY |  |
|C= $1000 |MONTHLY |  |
|C= $12000 |YEARLY |  |
|  |  | ...