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Imagine that a friend asks you for investment advice. He has $10,000 to invest and he has about 35 years before he will be ready for his financial goal of early retirement. What types of investments would you recommend to your friend? Why? What other investing advice would you give him to help him achieve his financial goals? Do you pay attention to the price of stocks on the stock market? Why or why not? Do you think it is beneficial to individuals to do so? Why or why not?

Respuesta :

nelsone19
First type of investments I would make would be in blue-chip stocks, a term given to stocks that are on the big exchanges, like the DJIA, NASDAQ, and so on. These include companies like Apple, Samsung, Tesla, Ford, Amazon, Blue Apron, etc. One piece of advice I would give them is to diversify your investments. An example is by investing in different sectors of the market, like invest in some stocks in the technology, gas, energy, and oil sectors instead of spending your money on one part of the entire market. As a 17 year junior, I do pay attention to the Stock Market everyday because that is where I want to work when I grow up (Wall St.). It is very important to do so because a trader needs to know the stock price of every stock he deals with at the beginning of the day because it can change throughout the day. It would also be beneficial for others, maybe not interested or trading/investing at the current moment, because it is important to know the details of our economy, since the market (especially the DJIA) gives us an accurate representation of the overall economy. It is important to know when it is a good or bad day for stocks. You might have some in the market for a long-term investment and you will need to know how well your investments are doing.

(a) Bond, which was suggested because of its lower yields but safety. (b) The Public Provident Fund (PPF), which is a government-sponsored savings scheme, is another suggestion. (c) The risk and return ratio of the stock market is higher. (d) Investments secure money and produce profit, thus they are advantageous to people.

What is investment?

An investment is a valuable item bought with the intention of increasing one's wealth. While stocks, bonds, and real estate are frequently included when discussing investments.

(a) Bonds are loans made to organizations or the government in return for predetermined interest payments made at regular intervals and the face value of the bond when it matures.

(b)The meaning of a PPF investment is clear. It is a savings program offered by the government that invests your money for a certain period of time and helps you get returns.

(c) Stocks are investments made in particular companies. This includes shares of any business that lets you get dividend payments. Stocks occasionally provide substantial gains, but they also carry higher risk than other forms of investment.

(d) It's crucial to accomplish personal goals. High risk and high reward are typically mutually exclusive.

Hence, the significance of the investment is aforementioned.

Learn more about on investment, here:

https://brainly.com/question/15105766

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