|
|
Yesterday, I was getting ready for company at my home. I helped my mom and dad
clean out the guest room. The guest room is always a mess made of old photo
albums, toys, and me and my brother's future birthday presents.
Anyway, our guest is going to be Uncle Stock. I can't wait till he plays board
games with me!
The next day, Uncle Stock pulled up in the driveway. I ran downstairs to the
front door and said, "Hi Stocky!" That is what I call Uncle Stock. I like
calling people by a nickname.
"Hello Maddie!" he said. Uncle Stock likes to call people by their nickname,
too. It must run in the family.
"Do you want to play Clue or checkers?" I asked him.
"Clue, but first let me see your parents," Stocky responded.
After my parents greeted him, we went upstairs to my room and I looked under my
bed for the game.
Uncle Stock surprised me by asking, "Why do you have a piggy bank?"
I told him, "I put money in it."
"But then you spend your money quickly," he responded.
"That is why I do not have money in it," I said sadly.
"I know a way to help you earn money. Invest in stocks, mutual funds, and
bonds."
"What are those?" I asked.
Uncle Stock said, "Stocks are small pieces or shares of companies, bonds are
loans to companies or governments, and mutual funds are collections of stocks."
"You can buy a part of a company for a certain price. You hope that they do well
in business and if they do, the stock will be worth more, so you will can sell
it for more money."
"You can buy stocks and mutual funds by calling a stockbroker to open an
account. A stockbroker is someone who is actually buying the stocks and mutual
funds for you. Then you need to tell how many shares you want and the
stockbroker will tell you the price."
"Make sure that you invest in a company that is safe, and only a little risky --
not one that is going straight down, but having little dips in price. The
stockbroker enters the order into a computer and makes it happen. After that,
you pay and the stockbroker sends a certificate to you."
"Well, Uncle Stock, since I'm too young to buy stock or mutual funds, can my
parents order it for me?" I questioned.
Stocky told me "Yes, they can purchase stock for you as someone who can control
your account."
"Can you sell your stock or mutual funds?" I asked.
Uncle Stock responded by saying, "Yes, you can sell it, and when the price is
higher than what you paid for it, you can make a lot of money. But if you sell
it when the price is less than you paid for it, you can lose a lot of money."
"Thanks for telling me this information!" I responded. "I'm going to ask my
parents if they can purchase a mutual fund or stock for me."
Author's Note: This is a report I wrote for school when we learned
about investing. I hope you liked my story and learned a lot from it, too! Oh,
and my source for the information was my teacher!
Going to purchase a stock,
softbll12
|
