Blue chip kids: what every child (and parent) should know about money, investing, and the stock market

Preface xv    A Note to the Reader xvii    Acknowledgments xix    Chapter 1 Money, Money, Money 1    The Journey Begins 1    Money from around the World   It   s Not All the Same 5    The Euro: What   s That All About? 10    Exchange Rates and Currency Exchanges 14    Different Ways to Make Money 18    Bitcoin 27    Chapter 2 Different Ways to Pay for Things 29    Checking Accounts 29    Electronic Bill Payment 31    Electronic Banking 33    Credit Cards 33    Debit Cards 36    Wire Transfers 37    Chapter 3 The Stock Market Is Cool 39    Stock Markets and Stock Exchanges: What Is the Difference? 39    What Is a Stock Market? 39    Wall Street and the Stock Market 40    Stocks 47    Stock Certificates 51    Market Cap 52    Bid/Ask/Spread 53    The Free Market and Valuation 54    When Can You Buy and Sell Stocks? 56    Stock Market Indexes 56    Initial Public Offerings (IPO) 59    The Securities and Exchange Commission 65    Market Correction 65    Market Rally 66    Chapter 4 Let   s Buy and Sell Some Stocks 67    Buy the Dips 67    Bulls and Bears 68    Paper Profits and Paper Losses 69    Risk On/Risk Off 69    Stock Charts 70    Market Top 72    Market Bottom 73    Trading Range 74    Being Long a Stock 74    Being Short a Stock 75    High-Frequency Trading 80    Fully Invested 82    Leverage 82    Chapter 5 Stock Options (Impress Your Friends with This One) 86    Options and the World of Puts and Calls 86    Options: How They Work 87    Options Expire: They Don   t Last Forever 88    Puts 88    More about Puts 90    The Underwater Put Option (Say What?!) 92    Calls 94    More about Calls 97    The Underwater Call Option 99    The Naked Call Option (OMG, Did You Say Naked?!) 100    Trading Options 102    Chapter 6 Funds (Giant Pools of Money) 104    What Is a Fund? 104    Index Funds 105    Mutual Funds 107    Hedge Funds 111    Chapter 7 Bonds and Certificates of Deposit (Sounds Boring but It   s Not) 114    Bonds 114    Yield 117    U.S. Treasury Notes and Bonds 118    Basis Points 121    Certificates of Deposit 124    Chapter 8 Analyzing Companies (Seriously, This Will Make You Very Smart) 127    How to Analyze a Company to See If You Want to Buy Its Stock 127    Price/Earnings (P/E) Ratio 131    EBITDA 137    Market Share 138    Earnings Season 141    Guidance 143    Dividends 144    Special Dividends 145    Stock Buybacks 146    Transparency 150    Private versus Public Companies 150    52-Week Moving Average 153    Chapter 9 Borrowing Money (Don   t Borrow Too Much   Ever!) 155    Mortgages 155    Amortization 158    Credit Ratings and Non   Real Estate Loans 160    Default 166    Bankruptcy 167    LIBOR 169    Chapter 10 Interest Rates (Making Money While You Sleep) 170    Simple Interest 170    Compound Interest 172    Annual Percentage Rate (APR) 175    Chapter 11 Net Worth (What   s Your Stuff Worth?) 177    Assets 177    Liabilities 177    Net Worth 178    Financial Statements 179    The    Oracle of Omaha    181    Chapter 12 Taxes (The Lower, the Better) 183    Gross Income 183    Net Income 183    Taxes 184    Audits 192    Chapter 13 The Economy (The Business of Business) 195    The Federal Reserve (The Fed) 195    Gross   As in Really Gross   Domestic Product (GDP) 198    Budgets 202    Budgets in Action 203    Our National Debt 204    Deficits and the National Debt
 So What? What Do They Have to Do with Investing? 205    Chapter 14 Venture Capital and Private Equity (Big Bets Chasing Big Profits) 207    Venture Capital (VC) 207    Private Equity 213    Chapter 15 Money Smart (Move to the Front of the Class!) 214    Retirement Savings 214    Your Mission, Should You Choose to Accept It 218    You Are Now Money Smart! 219    Chapter 16 And So It Ends   or Maybe This Is Just the Beginning 220    Disclaimer 223    About the Author 225    Index 227