Pathfinder for Teens - Getting Started in Investing

This pathfinder is designed to help young adults locate information and guidance on investing such as:

• Company information
• Stock market information
• Tutorials and guides
• Tools for evaluating stocks and companies

The materials listed here were selected for accessibility, ease of use, recency, and content.

Stock market investing is facilitated through access to very current information, the type easily found on the Internet. Many guides and instructional materials however, can still be useful in formats that are less up-to-date (published within the last few years).

Background & Basics -

Due to the terrorist attacks on 9-11-2001 and economic woes since then, many people are concerned about investing money in the stock market. However, due to these same factors, many established and reputable companies' stocks are very attractively priced. Due to the strength of the company, they can be expected to recover as the economy bounces back over the next several years.

What exactly is investing in stocks/equities?

It is purchasing a piece (a share) of a public company.

The value of the share changes with the (perceived) value of the company. I say perceived, because as recent investigations have shown, not all companies are as financially healthy or wealthy as they appear and claim to be -- Enron, for example.

Investing is not, or should not be, considered a 'get-rich-quick' scheme. Buying and holding stocks over a long term, in trusted and established companies, is where one can expect to see the financial reward.

Back to top

Definitions & Concepts Explained -

Use the following sources to look up unfamiliar terms or acronyms about investing. In addition, many of the websites featured in the pathfinder also contain glossaries and dictionaries.


Campbell R. Harvey's Hypertextual Finance Glossary, Website, 2003, Campbell R. Harvey
http://www.duke.edu/~charvey/Classes/wpg/glossary.htm

Boasting 7,200 terms and over 18,000 cross-references, this is an excellent resource for finance and investment definitions and acronyms. Browseable alphabetically only.

Investor Words, Website, 2002, WebFinance, Inc.
http://www.investorwords.com

A massive glossary of 6,000 terms and 20,000 cross-references makes this one of the most extensive investment/financial glossaries on the Web. Searchable and browsable.

Choosing a Company -

Think about companies with which you are most familiar. What brands do you wear - clothes and shoes? What is your favorite breakfast cereal? Your favorite video games? Your favorite candy?

Starting with a company you are familiar with will make your research more fun and hold your interest. Make a list of 5-10 companies.

Once you have a list, you are ready to begin your research. First, you must determine whether the company is a public or private company. Only public companies offer stock in which people can invest.

Most of the sites below offer guides and tutorials which will give you a basic introduction to the terminology, key financial statistics, and ratios to look for when deciding which companies you should invest your money in.

Back to top


Hoovers.com, Database/Website, 2003, Hoover's, Inc.
http://www.hoovers.com

This database/website is provided by Hoovers Inc., a well-respected publisher and business information provider. Use this site to find out whether a company is public or private, what line of business a company is in, where they’re located, some of their primary products, their primary competitors, and some financial information. Hoover's also offers Industry Snapshots - lists of companies within certain industry sectors. Some areas of the site are limited to subscriber access only (silver key).

Sample Capsule - Abercrombie & Fitch Co. (http://www.hoovers.com/co/capsule/0/0,2163,53170,00.html)

Back to top

Investor's Business Daily - Learning Center, Website, 2003, Investor's Business Daily, Inc.
http://www.investors.com/learn/

Several valuable and informative "Courses" are offered here; be sure to check the left side bar menu for New sections/courses. The Investor's Business Daily is a newspaper offered in print and online via subscription. The Learning Center is free.

Self-Described: IBD Learning Center - What makes our lessons different is that they're based on a half-century of research — learning what really works in the stock market. IBD Chairman and Founder William J. O'Neil took every available way to measure stock performance and compared how well each indicator fared in predicting major stock advances. The results led to a short list of characteristics that today remain the best predictors of a stock's price performance. They are the foundation of this Learning Center.

Self-Described: About the Investor's Business Daily - The Investor's Business Daily (IBD) was launched in 1984 and is now read by nearly a million investors. It is considered more of a research tool than a traditional newspaper. Known for its innovative stock tables, Investor's Business Daily provides critical information previously available only to institutional investors (pension and mutual funds, banks, insurance companies and government organizations). Exclusive features include the IBD SmartSelect® Corporate Ratings that provide fundamental and technical evaluations on virtually every stock on the Nasdaq, American and New York exchanges. Together with daily educational columns and features profiling individual companies and industries, IBD empowers readers to make profitable investment decisions.

Back to top



The Motley Fool, Website, 2003, The Motley Fool.
http://www.fool.com/

This site is one of my favorites for its humor, jargon free-information, and fun presentation. It is designed for the novice user and offers numerous "60-Second Guides", a Fool's School, and informative articles on investing and financial matters of all types. The site also features a Glossary, and Calculators. Membership is free and gives the user access to newsletters, a customizable portfolio which will track stocks, and personalized settings.

The Motley Fool also has an exclusive Teen section, Teens and their Money, at http://www.fool.com/teens/teens.htm, which features articles and guidance of relevance to teens.

Back to top

National Association of Securities Dealers (NASD) Brochure Series, Website, 2003, NASD, Inc.
http://www.nasdr.com/brochure_series.asp

The NASD Investor Brochure Series is designed to provide an introduction to different investment processes, programs, and strategies. See also the Investor Education section of the site. (http://www.nasdr.com/investors.asp)

Back to top

TeenAnalyst.com, Website, 2002, TeenAnalyst.com
http://www.teenanalyst.com/

TeenAnalyst.com presents regularly updated information about investing for teenagers. News articles are available, as well as educational materials on stocks, bonds, mutual funds, college scholarships, and more.

Self-Described: Welcome to our site! TeenAnalyst.com is a project we started in June 1999 to address the problem of financial illiteracy. Believe it or not, most kids graduate high school lacking basic personal finance skills. That's where TeenAnalyst.com comes in. The basic idea was to give kids the information they need to become successful investors. In order to accomplish this, we wrote and assembled a large database of articles about saving, investing, preparing for college, getting into the work force, and starting a small business. Enjoy the site!

Back to top


Teenvestor.com, Website, 2002, Gateway Publishers
http://www.teenvestor.com/

This website is a companion to the book of the same name, mentioned below under Books. It has separate sections for Young Investors and Young Entrepreneurs and information on many kinds of investment options, including stocks and DRIPs.

Self-Described: Welcome to the first complete investment website created especially for teenagers and their parents. No other website thoroughly covers the nuts and bolts of investing and entrepreneurship in a manner the young can easily understand.

Back to top

Yahoo! Finance, Website, 2003, Yahoo! Inc.
http://finance.yahoo.com/

This area of the familiar Yahoo! site is rich in finance information. Under the Education link, Dictionaries, Guides, and a Bookstore are offered. For specific companies, one can find stock quotes, multi-level/comparison charts, financials, insider trading details, a company profile/description, news, research (analyst recommendations), reports (for purchase), SEC filings, historical pricing, message boards, analyst ratings, competitors, ownership, and Wall Street analyst upgrades -- simply by typing in the ticker symbol. If only the company name is known, a ticker symbol lookup is provided to assist. The historical pricing feature of this site is particularly valuable; it gives stock prices for companies back to 1970.

Back to top



YoungInvestor.com, Website, 2002, Liberty Funds Distributor, Inc. (Requires Macromedia Flash to view)
http://www.younginvestor.com/

This interactive site from Liberty Funds is designed for young investors. It offers links to games (8 total); Kid Comm & Parent Comm - question/answer areas; Ask the Brain! section - your questions answered by investment professionals; Measure Up - a survey; the Library - articles, a Frequently Asked Questions section, and a Dictionary; an Allowance Calculator; and a link to the Liberty Funds Young Investor Fund - a fund you can invest in that is designed for the young investor.

Back to top



Zack's Investing 101, Website, 2003, Zacks Investment Research
1997 Version: http://www.zacks.com/invest101/
2003 Version: http://my.zacks.com/tour/i101/index.php3

I prefer the 1997 version because it is directed at young investors. The 2003 version is more 'general audience'. It is recommended that both tutorials be viewed.

Self-Described: Zacks Investment Research is proud to introduce the first in a series of 'how to' books on investing in the stock market. We hope that "Investing 101" will prove to be a valuable guide for those who have many questions about investing, but are afraid to ask.

What information is important?

As you look into information about the company, some things you should take note of are:

1) Does the company have a website? Does the website have an Investors Relations area?

Hoovers.com can give you these links within a company capsule: website address is under the company name at the top of the capsule, annual report links are on the lower right side bar. A Google search by company name can also link you directly to the company website.

2) Can you easily tell what the products of the company are and what the company's future plan or direction is?

Check Hoovers.com company capsule or the company website and company annual report for this information.

3) Have there been any recent news articles on the company of a favorable or negative nature?

This information will guide your investing decisions.

Finding financial information, articles, and news on a company

It may seem that all this research is time-consuming and boring, but the cost of randomly and rashly investing is too high to neglect this step.

• Reading articles on a company will provide you with viewpoints from multiple sources.
• Reading current news will keep you informed of any recent developments, both positive and negative, about your company and its business.
• Financial information will tell you how your company is using its money and how the company has performed over time.

Many of the sites in this pathfinder offer tutorials and guides, the more you educate yourself with these tools, the wiser and more informed choices you can make. These tools will also help you understand and interpret the information you read in articles, current news, and in financial statements.

Back to top

Company Financial Filings -

Every publicly traded company is required by law to file certain reports with the government, specifically with the SEC. The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets.

The most common filings are 10-Ks, 10-Qs, Proxy, and Prospectus. (For more information about 10-Ks, 10-Q, Proxies, and Prospecti, see the dictionaries, glossaries, guides, or tutorials at any of the sites in this pathfinder.)

Annual Report - Some companies choose to supplement their required filings with a non-required document known as the Annual Report to Shareholders (ARS).

The Annual Report is sent to all shareholders and often contains:

• a Letter to the Shareholders from the Company President or Chief Officer(s) -This letter discusses what happened over the past year and reveals plans for the future.
• detailed sections about the past year's progress in company divisions, subsidiaries, products and brands, and future developments in these areas.
• financial statements which show how and where money was spent for the last year.
  • historical financials are often included to show how the company has fared over time
  • accountant/auditor statement confirms that the financials are accurate
• contact information for the company and its board and administrative staff are given

Keep in mind that the Annual Report is designed and created by the Company itself, so it will definitely be biased in the company's favor; it is used to attract and keep investors/shareholders. Even so, it is still a valuable source of information on the company and its products and future directions.

Some companies spend a lot of time and effort on their annual report to make it unique and appealing. Wrigley's sends a package of gum to first-time shareholders; McCormick (the spice company) selects a particular spice each year and the entire report has the scent of that spice; and Toys'R'Us includes a mini-Kid's annual report.

Most company annual reports can be found on the company's website in the Investor Relations section; these are usually viewable and printable online or a print copy can be requested. Also, some academic libraries maintain print collections of annual reports; Purdue University's Management & Economics Library is one example. Other sources for annual reports and other filings are listed below:

Back to top

Annual Report Sources-

SEC Filings - EDGAR, Website, Modified: 02/12/2003, U.S. Securities & Exchange Commission
http://www.sec.gov/edgar/searchedgar/webusers.htm

Take the Quick EDGAR tutorial or begin searching immediately at 'Search for Company Filings' at this site. Required company filings can be found here.

Back to top

Public Register's Annual Report Service (PRARS), Website, 2003, Bay Tact Corporation
http://www.prars.com/

This service allows you to select multiple companies' annual reports and have them shipped to you free of charge. PRARS will send their most recent year's annual report for a company (which may not be the most current report available). The advantage of using this service is that you can order multiple companies' reports at once and receive them in a single shipment.

Back to top

Sid Cato's Official Annual Report Website, Website, 1996-2003 Cato Communications, Inc.
http://www.sidcato.com/majcont.htm

This website is a great source for unbiased and evaluative information on annual reports. Sid Cato has evaluated and critiqued annual reports for over 20 years and the site features his analyses and "Best of the Year" samples from 1997-2002.

Self-Described: Sid Cato is the only full-time monitor of the world's annual reports to shareholders of publicly held companies using proprietary computer programs for independent and consistent appraisal.

Back to top

Articles -



Inspire - EbscoHost - Business Source Premier, Database, 2003, INCOLSA
http://www.inspire.net/

This database is free to residents of Indiana. Business is only one of its many subject areas. Here you will find full-text articles from some of the biggest publications in business: Forbes, Fortune, Business Week and Business Week Online, Money magazine, Kiplinger’s Personal Finance, and more.

Self-Described: As the world’s largest full text business database, Business Source Premier provides full text for nearly 3,050 scholarly business journals, including full text for more than 1000 peer-reviewed business publications. Coverage includes virtually all subject areas related to business. This database provides full text (PDF) for more than 300 of the top scholarly journals dating as far back as 1922. This database is updated on a daily basis via EBSCOhost.

Sample Search:
Terms: kraft and products
Total Hits: 425
Results 1-4
1. Cheez Whiz Vs. Brand X.; By: Smillie, Dirk., Forbes, 5/26/2003, Vol. 171 Issue 11, p50, 1/4p, 1c
HTML Full Text

2. CONDIMENTS, SAUCES & OILS.; Restaurants & Institutions, 5/15/2003, Vol. 113 Issue 11, p22, 2/3p, 1c
HTML Full Text PDF Full Text (294K)

3. BEVERAGES.; Restaurants & Institutions, 5/15/2003, Vol. 113 Issue 11, p24, 2p, 4c
HTML Full Text PDF Full Text (562K)

4. Retailers thwart food-price hikes.; By: Thompson, Stephanie; Johnson, Bradley., Advertising Age, 5/5/2003, Vol. 74 Issue 18, p3, 2p, 1c
HTML Full Text

Back to top


Wall Street Journal - Database/Print, 2002, Dow Jones & Co, Inc.
(available through database Factiva, through direct subscription at WSJ.com, and in Print)
The database Factiva is often available at college and university libraries. Check with your local public or academic library reference librarian for access information.

The Wall Street Journal is the internationally-known financial newspaper that, since 1889, has provided current national and international news, business headlines, financial information, stock market prices, and a variety of other information vital to the business professional and investor.

Online Reader's Guide - describes the content and sections of the Wall Street Journal.
http://services.wsj.com/services/guide/index.html
Content Guide (Adobe Acrobat .pdf format) - a list of the sections/features and the days of the week they are published in the WSJ.
http://tour.wsj.com/images/launchbrochure.pdf

Sample Search:
Terms: nike and products, limited to most recent 6 months, within full article text
Total Hits: 26
Results 1-5

1. Corrections & Amplifications
The Wall Street Journal , 28 May 2003, 583 words, (English)
FOOT LOCKER Inc.'s chief executive, Matt Serra, told analysts in a May 2002 conference call that he planned to reduce the price range of some of its most expensive shoes to $90 to $120. That move contributed to a decision by Nike Inc. to ...
More Like This

2. Manager's Journal: Meet Pipeco (Nee Enron)
The Wall Street Journal , 27 May 2003, 826 words, (English)
WHEN IT COMES to branding exercises in the U.S., it's always the spectacular ones that make the news. When Nike announced a $90 million endorsement deal for out-of-high-school basketball player LeBron James last week, the company bought a ...
More Like This

3. Hoops Phenom Nets $90 Million Deal With Nike
The Wall Street Journal , 23 May 2003, 517 words, (English)
In a deal of unprecedented size for a rookie athlete, Nike Inc. will pay 18-year-old basketball wunderkind LeBron James about $90 million over the next seven years to wear and hawk shoes and apparel. ...
More Like This

4. The End of Nesting
The Wall Street Journal , 16 May 2003, 1914 words, (English)
[You're not the only one with cabin fever. In surprising numbers, Americans are returning to gyms, parties, even restaurants. Eileen Daspin on the country's new shift to `hatching.'] ...
More Like This

5. Rubber Match: In a Clash of Sneaker Titans, Nike Gets Leg Up on Foot Locker --- Once a Powerful Team, Retailer and Shoemaker Now Take...
The Wall Street Journal , 13 May 2003, 2741 words, (English)
When Nike Inc. rereleased its best-selling Air Jordan 3 sneaker last month, Cory Matz dragged his mom to two Sacramento, Calif., malls in search of the shoes. Foot Locker didn't have them. ...

Back to top


News -

CBS Marketwatch, Website, 2003, MarketWatch.com, Inc.
http://cbs.marketwatch.com/news/default.asp?siteid=mktw

This site is maintained by CBS Broadcasting (the familiar tv station) and features an Industry Analyzer unique to this site. With this tool, a user can clearly see the Top 10 Best Performers and Top 10 Worst Performers in a variety of industry sectors. With a free membership, user can access site features such as a portfolio tracker, interactive charting, and e-mail alerts.

To Access Industry Analyzer: From main page, select Investor Tools, then Industry Analyzer (links are available from 3 different locations: on Left side bar, Middle of screen under Industries, or center of page under Industry).

Back to top


CNNMoney, Website, 2003, Cable News Network LP, LLLP. An AOL Time Warner Company
http://money.cnn.com/

This site is a joint venture of CNN and Money magazine. Current financial and company news is available here. A glossary, calculators, personal stock portfolio tracking (Free registration required), and investing "lessons" (Money 101) are also offered. Links to specific areas of CNN and Money magazine are given.

Back to top

Quicken.com’s ONE CLICK SCORECARD, Website, Portions ©2003 Intuit Inc., portions ©2003 Muriel Siebert & Co., Inc. and portions ©2003 Pershing LLC
http://www.quicken.com/investments/strategies/

Self-Described: Working exclusively with Quicken.com, some of the nation's top investment analysts and portfolio managers have developed short, step-by-step strategies that you can use to evaluate stocks.
Here's how to get started:
• Type in the symbol for a stock in the quote box and click the Go button.
• We'll crunch all the numbers for you using the latest data available.
• You'll get an instant report showing how a stock fares using an expert's strategy, including an overall grade.

Sample search performed on Coca-Cola Company; Ticker symbol KO.
http://www.quicken.com/investments/strategies/?p=ko

Also found here are Investing ideas, Quotes & News, Analysis (which includes the One Click Scorecard, also see the Stock Evaluator & Analyst Ratings sections), and Company Data.

Instructional Software

Simply - Wealthy For Teens CD-ROM, 2002, Simply-Publishing Co.
http://www.simply-publishing.com/simply-living.htm

The Simply-Living Series™ provides information and skills to help families be successful. This software is available for Windows 98+ PCs only and also requires CD-ROM drive, Internet access, MS-Internet Explorer (6.0+), Windows Media Player (v7+), Excel, and Adobe Acrobat Reader; site date 2002. This material could be used to learn financial management skills that will be helpful throughout life.

Self-Described: Incorporating video, audio, print and guided activities, our first product in the Series, Simply-Wealthy for Teens helps families help teens start early in life: Gain Financial Understanding and Develop Financial Independence.

MARC Record:

245 00 |a Simply - Wealthy for teens |h [computer file].
246 30 |a Simply - Wealthy for teens
256 __ |a Computer data and programs.
260 __ |a Chico, CA : |b Simply-Publishing, Co, |c c2002.
300 __ |a 1 computer laser optical disc : |b sd., col. ; |c 4 3/4 in. + |e 1 user's guide
538 __ |a System requirements: IBM or 100% compatible PC computer with 300MHz Processor; 128 MB of RAM; MS-Windows (98+); Color Monitor; MPC-compliant sound card; mouse; hard drive; CD-ROM (double-speed recommended); Color Printer recommended. Internet access, MS-Internet Explorer (6.0+), Windows Media Player (v7+), Excel, Adobe Acrobat Reader.
500 __ |a Title from disc label.
520 __ |a Incorporating video, audio, print and guided activities, our first product in the Series, Simply-Wealthy for Teens helps families help teens start early in life: Gain Financial Understanding and Develop Financial Independence.
500 __ |a Juv. CD-ROM.
521 __ |a Ages 12 to 19.
650 _0 |a Financial planning |x Juvenile software.
710 2_ |a Simply Publishing.

Back to top

LavaMind's Gazillionaire Deluxe CD-ROM, Instructional Software, 1996, LavaMind
http://www.gazillionaire.com/order.html

This software simulation is a fun and entertaining way to learn abour economics, investing, and money management.

Self-Described: LavaMind's Learning Series is made up of three unique simulations designed to teach students business, math and economics. These educational simulation games are being used in a variety of classes, including social studies, economics, business and critical thinking courses. Apple: Windows emulation software for the Mac can allow you to run all of our software; Microsoft: All of LavaMind's games are Windows 95, 98, 2000, Me, NT & XP compatible.

Gazillionaire is a business simulation where the player runs a trading company in outer space. In Gazillionaire, the player must make decisions about supply, demand, profit margins, overhead, account balances etc. Because of Gazillionaire's built-in, "award-winning" tutorial with adjustable complexity levels, it appeals to a broad age group and has been used in a wide variety of courses. Gazillionaire worksheets are also available as a zipfile from the homepage address above. Original version (not Deluxe) available as free shareware - see below.

MARC Record: Gazillionaire deluxe

LC Control Number: 98802891
000 01320cmm 22002657a 450
001 5006193
005 20030409100841.0
007 co |||||||||||
008 980729s1996 cau g eng
035 __ |9 (DLC) 98802891
906 __ |a 7 |b cbc |c orignew |d 4 |e ncip |f 19 |g y-gencompf
925 0_ |a acquire |b 1 shelf copy |x policy default
955 __ |a vb28 07-29-98 |h vb22 2003-04-09 |e vb22 2003-04-09 to BCCD
010 __ |a 98802891
040 __ |a DLC |c DLC
050 00 |a HD30.28
245 00 |a Gazillionaire deluxe |h [electronic resource].
260 __ |a [San Francisco, Calif.] : |b LavaMind, |c c1996.
300 __ |a 1 CD-ROM ; |c 4 3/4 in.
538 __ |a System requirements: PC; Windows 3.1 or 95.
500 __ |a Title from disc label.
520 __ |a "Gazillionaire is a cross between Monopoly set in outer space and Wall Street in wonderland. It's a wild, intergalactic game of business strategy. Sophisticated real-world economic tools help you determine where supply meets demand as you race to build your trade empire. Six people can play at a time on the same computer or by email over the Internet. The first company to reach a net worth of a billion kubars wins!"--LavaMind Gazillionaire WWW home page.
500 __ |a Production level cataloging. |5 DLC
650 _0 |a Business planning |v Software.
650 _0 |a Computer games |v Software.

Books On Investing

The Motley Fool Investment Guide for Teens: Eight Steps to Having More Money Than Your Parents Ever Dreamed Of
By David & Tom Gardner with Selena Maranjian
August 2002, 244 pages, Softcover, Simon & Schuster, ISBN 0743229967,

Also available on Audio Cassette: 2002 Special ed. Abridged. English Sound Recording : Cassette tape 2 sound cassettes (ca. 2.5 hrs.) New York : Prince Frederick, MD : Simon & Schuster Audio ; Recorded Books, ISBN: 0743525566

Shelved in a library at: LC: HG4521; Dewey: 332.6/0835

Self-Described: Tom and David Gardner, the original Motley Fools, and Selena Maranjian, TMF Senior Writer, have created a realistic, hip manual. Using a squadron of young consultants (from middle school to college) they've outlined a practical path to financial independence -- and the possibility of piles of filthy lucre later in life. Here are the 8 steps in brief:

• Set goals (and reach them)
• Make and save money
• Be smart about your money
• Avoid financial blunders
• Know what to expect
• Your new friend: the Mutual Fund
• Actually invest!
• Learn together

Details are not "dumbed down." Exercises on saving and spending still allow for pizza and cars and clothes and a great sound system. According to The Motley Fool Investment Guide for Teens, "You don't want to pursue money for the sake of having money. Don't make your life little. Don't get petty. Don't be a miser. Instead, dream. Think of how you'll use the money to make both your life better and the world a little bit better place to be."

Most schools never touch this stuff. Many parents don't know it. Just understanding how compound interest works for you (in savings and investments) or against you (in credit card debt) is invaluable. Any kid who ever bought a Beanie Baby and deliberately left the ear tag on is ready to move on to bigger investments. Any teen who tracks Game Boy points can track the Nasdaq. It's all there in The Motley Fool Investment Guide for Teens.

Back to top

Teenvestor : the practical investment guide for teens and their parents
By Emmanuel Modu; Andrea Walker, 2002, 2000; English Book 300 p. : 23 cm.
New York : Berkley Pub. Group, ISBN: 0399527605

Shelved in a library at: LC: HG179; Dewey: 332.6/0835

Self Described: By using this book along with the teenvestor.com Web site, teens and their parents can learn how to make money multiply by steadily investing over time.

Back to top


Street wise : a guide for teen investors
By Janet Bamford, 2000 1st ed., English Book : Secondary (senior high) school, 223 p. ; 23 cm.
Princeton: Bloomberg Press, ISBN: 1576600394

Shelved in a library at: LC: HG4521; Dewey: 332.6

Self-Described: An investment guide for new investors, including stock market games and investment clubs, interviews with teens who have invested, investing advice, and additional resources.

Back to top

Wall Street wizard : sound ideas from a savvy teen investor
By Jay Liebowitz; 2000; English Book : Secondary (senior high) school 143 p. ; 24 cm.
New York : Simon & Schuster Books For Young Readers, ISBN: 0689834012

Excerpt of School Library Journal Review at Amazon.com: (follow link for full review)
From School Library Journal
Grade 7 Up-A clear-sighted, pragmatic investment manual for students who are interested in making money and who know a bit about how the economy works. After briefly introducing the basic concepts of investment, stocks, markets, and brokerages, Liebowitz gives investment tips and financial-planning guidance. He clearly espouses the philosophy: "get rich slow" and advises investors to do their own research on companies rather than rely on newsletters, rumors, bank officers, or mutual-fund managers....

Back to top

Books/Sites - Money Management and Entrepreneurship

These are some recent titles on general money management, starting your own business, and saving money for college and retirement.

How to be a teenage millionaire
By Art Beroff; T R Adams; 2000; English Book xvii, 318 p. : ill. ; 22 cm.
Irvine, CA : Entrepreneur Press, ISBN: 1891984179

Shelved in a library at: LC: HD62.5; Dewey: 658.02/2/0835

Description: Using modern and historical business whiz kids as examples, How to be a Teenage Millionaire teaches enterprising adolescents everything they need to know to become teenage entrepreneurs.

Back to top

Teen guide to personal financial management
By Marjolijn Bijlefeld; Sharon K Zoumbaris; 2000; English Book x, 269 p. ; 24 cm.
Westport, CT : Greenwood Press, ISBN: 0313311072 (alk. paper)

and as an E-book
2000, English Internet Resource Computer File x, 269 p. ; 24 cm.
Westport, CT : Greenwood Press, ISBN: 0313002428 (electronic bk.) http://www.netLibrary.com/urlapi.asp?action=summary&v=1&bookid=69801
Note: An electronic book accessible through the World Wide Web

Shelved in a library at: LC: HG179; Dewey: 332.024/055

Description: Why should young people even think about saving for retirement? Why not run credit card debt up to the max if the bank is willing to lend it? Answers to these questions and others can be found in this basic guide to the fundamentals of personal finance written specifically for young adults. A wide range of financial matters on how to manage your money are discussed in a progressive fashion from the very basics of opening a bank account to budgeting, paying for college, financing a car, and tax-deferred retirement accounts so that readers with varying levels of knowledge are provided with all the information they need to stay out of debt and to plan for their futures. ~from Amazon.com Editorial review

Back to top

The Complete Idiot's Guide to Money for Teens
by Susan Shelly; 2001; English Book : Juvenile audience xix, 240 p. : ill. ; 21 cm.
Indianapolis, IN : Alpha Books, ISBN: 0028640063 (pbk.)

Shelved in a library at: LC: HG179; Dewey: 332.024/055

Self-Described:
Teens are targeted as consumers more and more. This gives them tremendous influence, but it also sets them up to be taken advantage of. "The Complete Idiot's Guide to Money for Teens" teaches them how to get money, save and invest it, budget it, spend it wisely, and keep track of it. Whether they're saving for their first car, trying to make sense of a checking account statement, or trying to establish a good credit history, this guide has solid information and teen-tested tips.

Back to top



Practical Money Skills for Students - Teens, Website, 2003, Visa U.S.A.
http://www.practicalmoneyskills.com/english/students/level.php?id=3

This site has 14 lesson plans for teen students, each with Student Materials, Activities, Lesson Quiz, & Related Links. Two games and a calculator are also provided at the start page. Complementary Teacher's Guide and Parent Resource Center supplement Student materials, lessons, and instruction.
Teacher's Guide http://www.practicalmoneyskills.com/english/teachers/
Parent Resource Center http://www.practicalmoneyskills.com/english/parents/

I've done my research, now what?

Once you researched your company, the next step is determining how much money you have available for investing.
STEP ONE: If you have outstanding debt, pay it off FIRST!
STEP TWO: Make sure the money you are investing is money you can lose.
STEP THREE: Practice at an online stock market simulation.
STEP FOUR: Take the plunge -- INVEST!

Stock Market Simulations -

There's nothing to lose with a stock market simulation. Invest a thousand, a hundred thousand, or even a million dollars and see what happens over time. You may find yourself wishing you'd invested in the real thing!

This is a stress-free way to 'invest' and track your stock. Most simulations follow the real-life stock market and its fluctuations, so you can see exactly how stock market changes impact your stock.

Back to top


StocksQuest.com, Instructional Website, Creation Date June 2000, StocksQuest Materials
http://investsmart.coe.uga.edu/C001759/stocksquest/mystocks.htm

This simulation is my preferred choice; Not only is it a great simulation, it is also a valuable source of information. The website has sections on the U.S. Market, World Market, Stock Guide, Lesson Plans, and Online Investing. It is also one of the few remaining free stock market simulations on the Internet.

StocksQuest.com offers individual competitions and group competitions; the Educator link lists College Classes, K-12 Classes, and General Contests on the site. Particularly helpful for the new investor are The Lesson Plans. Fourteen lessons offer simple and useful guidance and instruction on the stock market and its terminology; includes exercises.

Back to top

The Stock Market Game (SMG Worldwide), Instructional Website, 1999, Securities Industry Foundation for Economic Education
http://www.smg2000.org/index.html

This simulation has set start and finish dates that correspond to typical school semesters, approximately 10 weeks in length. There is a $10.00 fee for each team of 1-5 members that participates and first-time teachers/instructors must undergo a mandatory training prior to the beginning of an investment game. The game is divided into different age groups: Elementary (Grades 4-6), Junior High/Middle School (Grades 7-8), High School (Grades 9-12). Additionally, there are separate games for teachers and for adults.

Back to top



Virtual Stock Exchange, Instructional Website, 2001, 2002, 2003 VSX, Inc.
http://www.virtualstockexchange.com/Home/default.asp

I participated in two competitions at this site before they began charging for the service. The features and layout of this site are very user-friendly and educational. Current fee structure:

Back to top



LavaMind's Gazillionaire, Online Game, 1996; Lavamind; reviewed at Education World in March 1999 and received an A+ rating.
http://www.lavamind.com/edu.html

Self-Described: LavaMind's Learning Series is made up of three unique simulations designed to teach students business, math and economics. These educational simulation games are being used in a variety of classes, including social studies, economics, business and critical thinking courses. Apple: Windows emulation software for the Mac can allow you to run all of our software; Microsoft: All of LavaMind's games are Windows 95, 98, 2000, Me, NT & XP compatible.

Gazillionaire is a business simulation where the player runs a trading company in outer space. In Gazillionaire, the player must make decisions about supply, demand, profit margins, overhead, account balances etc. Because of Gazillionaire's built-in, "award-winning" tutorial with adjustable complexity levels, it appeals to a broad age group and has been used in a wide variety of courses. Gazillionaire worksheets are also available as a zipfile from the homepage address above. Gazillionaire Deluxe version available in CD-ROM version (see above listing).
Gazillionaire Download (free shareware)
http://www.lavamind.com/download.html

DRIPs and DSPs

For the young person with limited cash at hand, one of the easiest methods of investing is through a DRIP, also known as a Direct ReInvestment Plan or Dividend ReInvestment Plan or a DSP, also known as a Direct Stock Purchase Plan.

Both types of these plans are considered direct investment plans because they allow investors to purchase shares of stock directly from a company without the use of a broker. The main difference between Direct Stock Purchase Plans and Dividend Reinvestment Plans is that Direct Stock Purchase Plans allow you to buy your first and every share directly from the company. Dividend Reinvestment Plans require you to own a minimum number of shares, registered in your name, before you can arrange to have your dividends automatically reinvested. (Definition from NetStock Direct).

The initial share(s) must be purchased through a broker, transferred into your name, and then the company will allow you to begin a DRIP.

Many well-known companies offer DRIPs, fewer companies offer both DSPs and DRIPS.

Back to top

Drip Central, Website, 2001, Douglas Gerlach & DRIP Central
http://www.dripcentral.com/

Self-Described: DRIP Central offers a comprehensive collection of links, articles, tutorials, and other resources, from all across the World-Wide Web. If you're just getting started with DRIPs, or are an experienced DRIP investor, you're bound to find DRIP Central a useful site. Here are some useful starting points:

• DRIP Investing, Step by Step -- A complete online book (http://www.dripcentral.com/onlinebook/)
• Ask Doug -- Answers to frequent questions about DRIPS and direct investing (http://www.dripcentral.com/askexpert/)
• DRIP Web Site Directory - Listings of other useful web sites in a number of categories (http://www.dripcentral.com/directory/)

Back to top



Moneypaper - DRIPs with no fees, Website, 2002, The Moneypaper, Inc.
http://www.directinvesting.com/moneypaper/companies/nofeeco.cfm

Self-Described: The Moneypaper, a monthly financial newsletter (available in print and online versions) has been responsible for empowering hundreds of thousands of individuals to be self-reliant investors, having helped them acquire diversified stock portfolios without the assistance of traditional stockbrokers.

The Moneypaper is dedicated to educating both small and large investors about ways to minimize investment risk. The sooner you start to invest the less risk you need take to reach your goals. You can buy stock for kids and grandkids though The Moneypaper gifts of stock program. The Moneypaper site includes a Kids Corner (http://www.directinvesting.com/moneypaper/drpkids/). It provides selected articles on tax-saving opportunities and provides little-known strategies to maximize investing results.

The Moneypaper recommends using direct investment plans (also known as dividend reinvestment plans, DRPs, or DRIPS) to buy stocks without a broker. This is a low-risk, low-cost way to save for retirement: That's because Direct Investment Plans (DRIPs) make it possible to employ two important investing strategies - dollar-cost averaging and broad diversification among industries and among companies.

Back to top

NetStock Direct, Website, 2002, Netstock Corporation
http://www2.netstockdirect.com/index.asp

The NetStockDirect site has a service which allows you to order DSP information from a number of companies by email, and has a list of companies offering DRIPs, with a check by those also offering DSPs. This site offers individual investors information about Direct Stock Ownership and Direct Stock Purchase Plans.

Back to top



Teenvestor.com section on DRIPs & DSPs, Website, 2002, Gateway Publishers
http://www.teenvestor.com/direct_investing.htm

Here you will find definitions and Pros/Cons of these investment methods.

Audio/Video -

When you invest in a company, you become a shareholder! Listening in on conference calls and shareholders' meetings allows you to find out first hand about earnings announcements (how well your company performed over the last quarter and dividends to be paid to shareholders), changes in company direction or administration, and the yearly business meeting where important matters are voted on, business matters are presented, and questions from the shareholders are asked and answered.

The Internet has opened up this previously private and tightly controlled area of company information to anyone with speakers and an adequate internet connection. Some of these audio files last as long as 2 hours or more and the necessary plug-ins must be installed on your computer in order for them to play.

CCBN Company Board Room - Conference Calls, Audio, Website, 2003, CCBN, Inc.
http://www.companyboardroom.com/conferencecall_week.asp?date=20030601&client=cb

This website allows a person to listen in on conference calls and annual shareholders meetings. Searchable archive by date; also searchable by company name.

Back to top

Forbes.com Conference Calls, Audio, Website, 2003, Forbes.com
http://www.forbes.com/finance/eventcalendar/TodaysConferenceCalls.jhtml

Only those listings with a megaphone icon are available.


Back to top

Jump$tart - Financial Smarts for Students, Website/Video, 1997-2003, The Jump$tart Coalition for Personal Financial Literacy
http://www.jumpstart.org/

This website which is featured in both normal and Flash versions, introduces materials that can teach young people about financial management, insurance, investing, and saving.

Self-Description: First convened in December, 1995, the Jump$tart Coalition for Personal Financial Literacy determined that the average student who graduates from high school lacks basic skills in the management of personal financial affairs. Many are unable to balance a checkbook and most simply have no insight into the basic survival principles involved with earning, spending, saving and investing.

Many young people fail in the management of their first consumer credit experience, establish bad financial management habits, and stumble through their lives learning by trial and error. The Coalition’s direct objective is to encourage curriculum enrichment to insure that basic personal financial management skills are attained during the K-12 educational experience. The wheels of education do not need to be reinvented, they simply require balance. Free materials are available under the Resources link at the website (http://www.jumpstart.org/search1.html).

The descriptive Video is offered in both high- and low-bandwith versions and requires Windows Media Player to operate.


Back to top

Yahoo! Finance Conference Calls, Audio, Website, 2003, Yahoo! Inc.
http://biz.yahoo.com/cc/

Searchable by date, company; archive available.

Conclusion

This site is designed to be an introduction to investing for the teenager, but could be used to educate any novice investor. The simulations could be used by economics classes at the high school level, by families learning about investing together, or as a guide for library science students seeking some investing sources and tools. It is not all encompassing and is not intended to support any particular stock or investing strategy, but seeks to recommend sites and materials that will lead to a deeper and more informed understanding of investing.

Back to top

This site was created May 31, 2003 by Monica Turner for L595 Electronic Resources for Children & Young Adults at IUPUI, Summer I 2003; Instructor: Annette Lamb. Any questions, comments, or errors should be reported to Monica Turner.