Beware of shady investors. Like the Wolf of Wall Street, you can't always tell when an investor is involved in shady deals. And they don't always wear sunglasses, like the Tampa "genius" with luxury tastes who was charged in an investment scheme. Check out the Tampa Bay Times article to consider what the standards don't teach, the most important investment rule of all: If it seems too-good-to-be-true, it is too-good-to-be-true.Discuss the concept of "risk" and how investments with greater risk often have a lower market price but the possibility of a higher rate of return. However, this rate is not guaranteed. Tell students that as they read, search for some of the red flags or too-good-to-be-true signs that they should consider as future consumers of investment opportunities. Then, think of a tweet you would send if you were warning others about shady investors.
SS.8.FL.5.5 Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return.
SS.912.FL.5.4 Explain that an investment with greater risk than another investment will commonly have a lower market price, and therefore a higher rate of return, than the other investment.
SS.912.FL.5.6 Describe how diversifying investments in different types of financial assets can lower investment risk.
Deborah Kozdras, Ph.D.