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Made Simple: CompoundingVideo

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Player Id: bb60d070-b695-4c55-9162-a421ad370a53

Video ADA Text: Video transcript: Made Simple: Compounding

Transcript Browser Title: Made Simple: Compounding video

Description: Learn more about the power of compounding with this short video.

English

Video Id: 6031868917001

Audio Description Video Id: 6031873248001

Length (seconds): 81

Transcript: <h2>Note:</h2> <p>This video uses animated infographics.</p> <h2>On screen:</h2> <p>J.P. Morgan logo.</p> <p>Investment and insurance products:</p> <p>Not a deposit.</p> <p>Not FDIC insured.</p> <p>Not insured by any federal government agency.</p> <p>No bank guarantee.</p> <p>May lose value.</p> <p>Subject to investment risks, including possible loss of the principal amount invested.</p> <p>Compounding Made Simple by J.P. Morgan.</p> <h2>Note:</h2> <p>A subdued jazzy melody plays.</p> <h2>On screen:</h2> <p>The letters in &quot;Compounding&quot; turn into abstract shapes…and then become a question mark.</p> <h2>Narrator:</h2> <p>Maybe you have heard about compounding and thought “that seems complicated!” But the truth is its actually really simple…</p> <h2>On screen:</h2> <p>A coin falls into a cup.</p> <h2>Narrator:</h2> <p>Basically, compounding is when you make an investment, that initial investment grows and then new growth builds on top of it.</p> <h2>On screen:</h2> <p>A sprout grows with two leaves…then two more leaves grow.</p> <h2>Narrator:</h2> <p>For example, imagine you invested $100 into your favorite coffee company stock.</p> <h2>On screen:</h2> <p>Coffee pours into a coffee cup.</p> <h2>On screen:</h2> <p>$100.</p> <h2>Narrator:</h2> <p>This year the stock of that company grows by 10%, so your investment also grows by 10% making it worth $110.</p> <h2>On screen:</h2> <p>+10%</p> <p>$110</p> <h2>On screen:</h2> <p>If the next year the stock then grows by 10% again, your investment also grows by 10% again. But this time its 10% of $110 so the growth is larger than the year before.</p> <h2>Narrator:</h2> <p>This is the concept of compounding.</p> <h2>On screen:</h2> <p>A coin, showing a dollar sign, increases in size.</p> <h2>Narrator:</h2> <p>While the value of stocks can go up and down, by staying invested over time that initial investment may turn into something powerful.</p> <h2>On screen:</h2> <p>A line graph appears, showing growth over time.</p> <h2>Narrator:</h2> <p>Stay invested.</p> <h2>On screen:</h2> <p>Compounding Made Simple by J.P. Morgan.</p> <h2>On screen:</h2> <p>J.P. Morgan logo.</p> <h2>Note:</h2> <p>Legal disclosures appear.</p> <h2>On screen:</h2> <p>Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.</p> <p>Past performance is not a guarantee of future results.</p> <p>The price of equity securities may rise or fall due to the changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. Equity securities are subject to ‘stock market risk’ meaning that stock prices in general may decline over short or extended periods of time.</p> <p>This video and its content have been developed for J.P. Morgan Securities LLC clients and prospects and is for informational and educational purposes only. It is designed to provide general market commentary and information relating to certain services offered by J.P. Morgan Securities LLC, an affiliate of JPMorgan Chase &amp; Co. Opinions expressed herein are those of the author and may differ from those of other J.P. Morgan employees and affiliates. The information in no way constitutes J.P. Morgan research and should not be trusted as such.</p> <p>Further, the views expressed herein may differ from that contained in J.P. Morgan research reports.</p> <p>The information and views expressed are not intended to provide specific advice or recommendations for any individual. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult your advisor.</p> <p>Investment products and services are offered through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMS, CIA and J.P. Morgan Chase Bank, N.A. are affiliated companies under the common control of JPMorgan Chase &amp; Co. Products not available in all states.</p> <p>Copyright {{copyrightCurrentYear}} JPMorgan Chase &amp; Co.</p> <p>END</p>

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