Why Investing?

By. The Members of the Economics Club

 What is investing?

Investing is the act of committing money or capital to

an endeavor (a business, project, real estate, etc.),
with the expectation of obtaining an additional
income or profit.
 Investing vs. Gambling
• Investing is NOT gambling.
• You can prevent total loss of risked capital with investing but not with gambling

• Investing is generally over a long period of time

• The risk can be varied with investing by choosing different methods (ETF’s,
shares and bonds)

• Calculated risks are taken with investing

• More information is made available to the investor (financial ratio, company

earnings and management teams)

• Investing is an entire world away from trying to win a World Series of

Poker so, in conclusion, investing is NOT gambling.
 Advantages to teens
1. Time is on our side

2. Compounding returns

3. Improves spending habits

4. Ahead of the personal finances “game”

5. Advantageous for life in college

Average tuition cost in the US
• According to the College Board, the average cost of
tuition and fees for the 2017–2018 school year was
$34,740 at private colleges, $9,970 for state
residents at public colleges, and $25,620 for out-of-
state residents attending public universities.

• So, for all four years, the tuition fee for private
colleges will be approximately $138,960
(Rs. 99,79,412).
 What is the Investopedia Stock
Simulator?
• Before putting your hard-earned savings on the line, why not practice
with a virtual account?
• The Simulator uses real data from the stock markets in order to
reproduce the experience of using a real online brokerage account.
• Users are provided with a virtual cash balance and can place virtual
trades using real market data.
• The simulator is used for a variety of reasons: educators use it as a tool
to introduce students to the stock market, some employ it to test new
investing strategies, and others use it to experience what it "feels like" to
place a trade.
• Regardless of your current level of financial knowledge, the Simulator
can help make you a better investor.
Advantages of using stock simulators

• We can try different strategies without fear of loss

of capital

• We get to develop our skills and learn more as a

team about the nuances of investing

• We learn about the practical side of economics and

business through real-life scenarios

• Frankly, it’s just fun.

 Citations

⁃ https://www.investopedia.com/terms/i/investing.asp
⁃ https://www.investopedia.com/articles/basics/09/
compare-investing-gambling.asp
⁃ https://www.principlesofincrease.com/benefits-
investing-young-age/
⁃ https://www.collegedata.com/cs/content/
content_payarticle_tmpl.jhtml?articleId=10064