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 Did you know people have been trading on Wall Street in New York City since before the Revolutionary War?
At first, items like furs and tobacco were traded, and later trading included real estate, bonds, and other investments. Today, Wall Street is considered the financial capital of the world.
Want to become an investment pro? Let’s learn some Wall Street basics first:
A stock is a share, or part ownership, or a business. When a new company wants to raise money to expand, it may
decide to sell shares of stock in its business. The shares are sold to investors. Owners of shares are called shareholders or stockholders. These shareholders may vote at an annual meeting to elect a board of directors and vote on company management issues.
A stock exchange is a marketplace where stocks are bought and sold. The largest and oldest stock exchange in the world is the New York Stock Exchange, where more than 200 million shares worth nearly $9 trillion were traded in 1999.
A bond is what governments and businesses sell to investors as a way to raise money for long-term projects. It’s similar to an I.O.U. – a bond is sold to an investor for less than it's face value; after a certain amount of time has passed, the investor can cash in the bond for its face value. Take U.S. government savings bonds, for example. A Series EE bond is purchased from the government for $50. If the investor who bought it holds on to it for the designated 17-year period, she can cash it in for its face value of $100.
 When Cathy was born, her aunts and uncles bought eight $100 Series EE bonds for $50 each. At age 17, how much bond money would Cathy have towards her college tuition? ANSWER
A security is another term for stocks and bonds.
A mutual fund is a group of investors who pool their money to invest in a group of stocks, bonds, and other securities.
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