The Investment Process

Assignment 1 Investments FIN 320 Professor Scott Shaw October 27, 2011 The Investment Process You decide that you motif to start preparing for your financial future. What is your purpose for investing? What do you curriculum to do with the coin you earn? Are you planning for retirement, college tuition, car, or just for a vacation. The purpose plays an important role in your decision to invest because it helps to identify the time period for the investment. If you atomic number 18 investing for retirement or college tuition, you will probably yield more time in order to make your capital work for you. If you are planning on buying a car or planning a vacation, the timeframe will be sooner. Once youve determined the purpose of your investment, youll be ready to perish started on the path to achieving your goals. You will need to decide how untold you are willing to lose and if you are willing to buy out that risk, because investing is a risk. Then you will need to explore and decide which investment portfolio you will invest in; bonds, stocks, coarse silver, or derivatives. Bonds, Stocks, Mutual Funds and Derivatives Bonds are debt securities, similar to an I.O.

U, utilize by local, state and federal governments, and private corporations to secure funds for various projects. Bonds are one way our public and private institutions borrow billions to billions of dollars. When you purchase a bond, you become a lender, allowing a corporation or government agency to borrow your money for a specific period of time. In return, the agency or corporation pays back what you loaned plus interest. Bonds are known as fixed-income investments, because they earn interest at a specific valuate over a predetermined period of time. When the bond matures the cling to is paid to the investor. Bonds can be short-termed or long-termed investments. Bond prices go up and down depending on interest rate changes and fluctuations in the credit quality. The safety of a bond depends on... If you want to bug out a full essay, order it on our website: Orderessay

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