...Common Types of Investments There are several ways to invest your hard earned dollars. The key to finding the best type of account you want to invest in is to be educated to the types of investment accounts available and advantages and disadvantages of each. It may take some time to find the right type of account, but, with the right information, the best decision can be made. I used the Regions bank website to investigate four common types of investment accounts: checking accounts, money market accounts, passbook savings accounts, and certificates of deposits. Although rates may differ between banks, I will also use the rates as typical examples of the type of interest that can earned from each of these accounts. With the information I find, I will decide which would be the best choice to invest $1,000. Checking accounts are common accounts that most people have and use daily. While some have monthly fees, most banks offer some type of free checking as long as the account meets certain criteria. Regions offers a checking account that has an $8 monthly fee, which will be waived if the account meets one of the following criteria: direct deposit, 15 electronic transactions per month, or a $1,000 average monthly balance. Some other advantage of this type of account is the convenience of having your funds available immediately, low risk, and you can use online banking. You would either be able to withdraw by going into the bank, or use the free ATM/debit card that is...
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...Different Types Of InvestmentsIt is very necessary to know different types of investment before you actually start investing. There are hundreds of different investments types available. An understanding of the core concepts and a thorough analysis of the various types of investment can help you to make the right choice. Take a look at different investments types given below.Bonds investmentsOne of the different kinds of investments is bond investments. Bond is commonly used to refer to any securities that are founded on debt. These are fixed income instrument which are issued for the purpose of raising capital. When you purchase a bond, you are lending out your money to a company or a government. In return, they will give you interest on your money and eventually pay you back the amount you lent out. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.Stocks investmentsBuying stocks is also one of the investments types. To purchase a stock makes you to become a part-owner of the business. This entitles makes you to receive the profits generated by the company. These profits are called as dividends. Stocks are more volatile and riskier than bonds. However, stocks provide relatively high potential returns as compared to bonds.Mutual Funds investmentsAnother different investments types that you can invest is mutual funds. Mutual fund is the collection of stocks and bonds. This also involves paying a professional manager to select specific...
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...other long-term goals such as college expenses or elderly care. As an investor, you can place your money in a variety of investments, such as bonds, certificates of deposit, stocks and mutual funds. You can also invest in a wide range of industries, from manufacturing to insurance. Diversification refers to the practice of spreading your investment dollars over several types of investments -- this practice can offer several advantages. Reduced Risk of Loss * Although economic, political and social conditions can cause fluctuations in your investment portfolio balances, these factors rarely have the same effect on all types of investments. Diversification of your investment portfolio can help shield you against overall losses caused by changes in factors that affect individual investments. For example, if you invest 20 percent of your money in international stocks and the rest in bonds and mutual funds, a change in international market conditions will likely only have a significant impact on 20 percent of your portfolio. Broader Range of Opportunities * Placing your money in several types of investments can give you access to a broader range of opportunities than investing all of your money in one or two types of investments. This provides opportunity for investment growth if some of your investments become stagnant. For example, spreading your investments across bonds, certificates of deposit and stocks can permit greater growth than simply relying on certificates of deposit...
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...Accounting Multiple Choice Questions MEASURES OF OUTPUT 1. The primary purpose of the national-income accounts is to assist: A) Market investors in making more profitable investments. B) Wage earners in maximizing their incomes. C) Economic historians to better understand the economic past. D) Government policy makers in formulating economic policies and evaluating performance. Answer: D Type: Definition Page: 93 2. Prices are used in national accounting to: A) Add the values of output from different sectors of the economy. B) Compare the value of output of one period with that of another. C) Provide an index to measure the rate of inflation. D) All of the above. Answer: D Type: Basic Understanding Page: 93 3. The GDP is: A) C + I + G + (X - IM). B) The sum of value added at every stage of the production process. C) The total market value of final goods and services. D) All of the above. Answer: D Type: Definition Page: 93 4. The total market value of all final goods and services produced in an economy during a given time period is the definition of: A) Gross domestic product. B) Net domestic product. C) National income. D) Personal income. Answer: A Type: Definition Page: 93 5. GDP can be calculated by: A) Adding up the spending on goods and services by business, government, households, and foreigners, and subtracting imports...
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...Customize View Search: View: Current Investment Prior Investment Current Subsidiary/Operating Unit Prior Subsidiary/Operating Unit Merged Entity Current Investment Arm Prior Investment Arm Pending Acquisition/Investment Cancelled Acquisition/Investment Group By: Investments Company Name Relationship Type Primary Industry Last Investment Date LTM Total Rev. ($mm) LFQ Total Assets ($mm) LFQ Total Debt ($mm) Period End Date Cuadrilla Resources Holding Limited Pending Acquisition/Investment Oil and Gas Exploration and Production Feb-16-2010 - - - - Website: There is no website for this company Business Description: Cuadrilla Resources Holding Limited operates as an oil and gas exploration and production company. The company was founded in 2007 and is based in the United Kingdom. Investment Coverage: - Relationship with Investor/Parent: Total Investment ($mm): - Expected Exit Date: - Percent Owned (%): - Return on Investment (%): - Controlling Interest: - Investor Notes: - Transactions: Date: Feb-16-2010 Type: Private Placement Size ($mm): 58.00 Status: Announced Eagle Energy, LLC Pending Acquisition/Investment Electric Utilities Dec-21-2009 - - - - Website: www.eagleenergyllc.com Business Description: Eagle Energy, LLC provides alternative energy supply, and electricity and natural gas consulting and aggregation services to commercial, industrial, and governmental entities. The company also offers...
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...is NOT one of these? A) Transform financial assets acquired through the market and constituting them into a different, and more widely preferable, type of asset–which becomes their liability. B) Exchange financial assets on behalf of customers but not for their own accounts. C) Manage the portfolios of other market participants. D) Assist in the creation of financial assets for their customers, and then sell those financial assets to other market participants. Answer: B Comment: Financial enterprises exchange financial assets both on behalf of customers and for their own accounts. Diff: 2 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 2) Financial intermediaries include ________ that acquire the bulk of their funds by offering their liabilities to the public mostly in the form of deposits; insurance companies, pension funds, and finance companies. A) depository institutions B) utilities C) initial public offerings D) preferred equity instrument. Answer: A Diff: 1 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 3) Some nonfinancial enterprises have subsidiaries that provide financial services. These financial institutions are called ________. A) free finance companies. B) captive finance companies. C) captive investment companies. D) captive finance shares. Answer: B Comment: Some nonfinancial enterprises have subsidiaries that provide financial services. For example...
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...Master of International Business Administration Financial Management-Fall 14088 Mutual Funds, Types, Classifications, Risks, Expenses and Performance in Egypt Supervised By Dr. Ahmed Bahaa Presented by: Yasser Hassan El Sayed Oct 19, 2014 DrAhmedBahaa-ESLSCA-FM-45A-Yasser Hassan El Sayed - Mutual Funds Assignment Page |1 Table of Contents TABLE OF CONTENTS ............................................................................................................................................1 1) WHAT IS A MUTUAL FUND? ................................................................................................................................2 1.1. 1.2. 1.3. 2) WHAT IT IS? ...................................................................................................................................................2 WHY WE INVEST IN MUTUAL FUNDS?...................................................................................................................2 OBJECTIVES OF MUTUAL FUNDS? ........................................................................................................................3 MUTUAL FUNDS TYPES........................................................................................................................................3 2.1. 2.2. OPEN-END FUNDS............................................................................................................................................3 CLOSED-END FUNDS ..........
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...is NOT one of these? A) Transform financial assets acquired through the market and constituting them into a different, and more widely preferable, type of asset–which becomes their liability. B) Exchange financial assets on behalf of customers but not for their own accounts. C) Manage the portfolios of other market participants. D) Assist in the creation of financial assets for their customers, and then sell those financial assets to other market participants. Answer: B Comment: Financial enterprises exchange financial assets both on behalf of customers and for their own accounts. Diff: 2 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 2) Financial intermediaries include ________ that acquire the bulk of their funds by offering their liabilities to the public mostly in the form of deposits; insurance companies, pension funds, and finance companies. A) depository institutions B) utilities C) initial public offerings D) preferred equity instrument. Answer: A Diff: 1 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 3) Some nonfinancial enterprises have subsidiaries that provide financial services. These financial institutions are called ________. A) free finance companies. B) captive finance companies. C) captive investment companies. D) captive finance shares. Answer: B Comment: Some nonfinancial enterprises have subsidiaries that provide financial services. For example...
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...manager is to decide which, if any, projects or investments opportunities the organization should undertake. The task of analyzing and comparing financials is a daunting task, but when utilizing the tools of capital budgeting, the process of this type of business decision making can be quite useful. This paper will define capital budgeting and discuss some of the components of this decision making tool. It will also discuss some of the concerns that go along with Capital Budgeting. The Basics of Capital Budgeting What is Capital Budgeting? Organizations looking to expand their business through asset acquisition create a capital budget (Paden, n.d.). Capital budgets exclusively are associated with real estate, equipment and other potential assets used to evaluate asset impact and the potential benefit to the organization. Capital Budgeting is the process in which a business determines whether a project or investment venture are worth pursuing. It is the process of analyzing investment opportunities and deciding which one to accept (Berk & DeMarzo, 2014). Potential ventures are evaluated and the potential expenditures or investments are ranked. Usually, these types of business decisions are for large purchases or investments. Steps of Capital Budgeting There are seven steps involved in capital budgeting (Hofstrand, 2013). They are: 1. Identify long-term goals of the organization 2. Identify potential investment prospects for meeting long-term goals identified...
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...1.1. Introduction Mutual Funds in India – History The concept of Mutual Funds in India emerged as success as early as 1990s, when Government allowed public sector banks and institutions to launch mutual funds schemes. Unit Trust of India was the first Mutual Fund in India set-up in the year 1963 Security and exchange Board of India (SEBI) act was passed in the year 1192. The objectives of SEBI are - to regulate security market and protect the interests of investor community. It is regulatory institution which is responsible for formulating policies and guidelines for operation of mutual funds in India. Mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. More than 80 million people, or one half of the households in America, invest in mutual funds. In fact, many people think investing means buying mutual funds. After all, its common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account, but, for most people, that's where the understanding of funds ends. It doesn't help that mutual fund salespeople speak a strange language that is interspersed with jargon that many investors don't understand. Originally, mutual funds were heralded as a way for the little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the Wall Street Journal...
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...Introduction Stocks and bonds qualify as the two major classes of assets that are used by investors in planning their portfolios for investment. Stocks offer the investors an opportunity to have a stake in the company, whereas the bonds are affiliated to the loans that are made to a company. Generally stocks are considered to be very volatile and much risky to invest in as compared to the investment in bond (Alexieff, 2014). However there exist different stock and bond types that have with them varying volatility levels and the risks also vary. Types of Stocks and Bonds There exist different types of stocks and bonds from which an investor could choose from. Out of these stock and bond types, some make sound investment records than other types of bonds or stocks. Types of Stocks Stocks are classified under two major categories which include common stocks and the preferred stocks. The preferred stock is further classified into the participating and the non-participating stocks. Majorly most investors usually trade in the common stocks only (Veale & New York Institute of Finance, 2011). Under the common stocks, it is very easy to evaluate stock types depending on a number of primary factors. Diversified investment portfolios involve wide and vast company types of stocks. Stocks can be classified as follows: Stocks by size- there are various types of companies that one can invest his stocks in. There are small sized companies, medium companies and the large corporations....
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...Real Estate Investment analysis Real Estate has evolved as the most profitable business over the years for those who can invest heavily in land or property and wait for their increase in value. However, the property may fetch instant cash in exceptional times like the sudden increase in value due to market reasons such as experienced just before the global financial credit crunch or due to the property’s unique location. This is classified under the short term type of real estate investment. The classification is based on the relative time spent to consolidate worth. The long term type of real estate investment therefore means that the owner has to wait for longer for the property or land to consolidate worth. (Isaac, 1998). The short term type of investments need professional skill, current knowledge and experience in the market. Long term estate investment is generally considered to be the most profitable since the period of the investment is longer and the returns are good. A different classification identifies Real Estate Investment Trusts, land investments, rental properties and vacation rental properties as the different types of Real Estate investments. This is a more narrow and specific classification than the previous one. The history of indirect investment in property can be traced back to the 1950s across the world. A diverse range of property investment vehicles have emerged since then. These exist in the form of both debt and equity...
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...Beyond the Business Case: New Approaches to IT Investment As IT becomes more closely tied to business objectives, successful investment must consider two dimensions: technology scope and strategic objectives. Jeanne W. Ross and Cynthia M. Beath When senior managers at United Parcel Service (UPS) first decided more than 15 years ago that package tracking had become a competitive necessity in the package-delivery industry, they discovered that developing the capability was not as simple as writing or buying a package-tracking application. The company needed to develop networks, databases and processing capacity before it could even begin to offer tracking services.1 At about the same time, Delta Air Lines began focusing essentially all its information-technology spending on rebuilding its airport systems and infrastructure, in part to address Y2K concerns. But shortly after Jan. 1, 2000, in what the CIO described as a “land rush,” line managers submitted requests for IT investments that totaled almost three times what Delta could allocate. Each request presented a business case that promised significant positive returns on investment. But combined, they far exceeded the ability of the IT unit to deliver.2 Such experiences are not unusual. In the last 15 years, a tidal wave of ITenabled initiatives, from business-process reengineering to enterpriseresource planning, has elevated the importance of investing strategically in IT. Jeanne W. Ross is principal research scientist...
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...Real Estate Investment Trusts Financial markets transfer funds from those who have excess funds to those who need funds. A financial market is a market in which financial assets or securities such as stocks and bonds can be purchased or sold. Funds are usually transferred in financial markets when one party purchases financial assets previously held by another party. Financial markets facilitate the flow of funds and thereby allow financing and investing by households, firms, and government agencies. Real estate investment trusts or REITs is a good example of a financial market. What are REITs? According to investopedia, REITs are securities that sell like stocks on the major exchanges and invest in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. REITs can also be defined as a real estate company or trust that has elected to qualify under a certain tax provision to become a pass-through entity that distributes to its shareholders substantially all of its taxable earnings in addition to any capital gains generated from the sale or disposition of its properties. Individuals have the possibility to invest in REITs either by purchasing their shares directly on an open exchange market or by investing in a mutual fund that specializes in public real estate. An additional benefit to investing in REITs is the fact...
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...Several investment pools have been established by the partners of the Partners Healthcare and the two main investment pools are the short term investment pool and the long term investment pool. The investment pools invest the funds of the hospitals in order to generate the desired risk objectives and under the minimum risk of their returns in order to fulfill the needs of all the hospitals. Furthermore, the investment assets in the short term pool comprised of about the short term fixed income financial assets with high quality in terms of the expected returns. These are the reasons that the STP is treated as the risk free portion of the entire investment portfolios of Partners Healthcare. However, the investment assets in the LTP comprised of high risk equity stocks and foreign stocks also which made the risks much higher for this specific class of the investment fund. Therefore, in order to diversify the risks associated with LTP and to decrease the volatility of the returns for this specific fund in the long term, the Investment Committee of Partners Healthcare sought to introduce a new type of investment assets in the LTP. This new type of the investment asset is called as the real asset. Two types of the real assets which were REITs and the commodities such as the futures were considered for incorporation in the LTP portfolios and a result of that the performance of LTP at the end of 2004 turned out to be excellent. Moreover, the Investment Committee wanted to expand...
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