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Investments Case

Essay by   •  January 18, 2012  •  Essay  •  1,172 Words (5 Pages)  •  1,317 Views

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Summary: If I could save no more than $200 a month, I would probably save my money in Mutual Funds. Money Market Mutual Funds are these funds that are sold by companies that sell stocks, Bonds, and other types of investments.

If I could save no more than $200 a month, I would probably save my money in Mutual Funds. Money Market Mutual Funds are these funds that are sold by companies that sell stocks, Bonds, and other types of investments. The funds' managers lead money to businesses and Governments for short periods of time. For every dollar put in such a fund, an investor can expect to get back a dollar plus interest.

Although the federal government does not insure money market mutual funds, they are low- risk investments. Interest rates are usually higher than on bank accounts but lower than for stocks and bonds bought and held for the long term. Investors can get their money at any time; they even write checks on the account.

Now we have Stock Mutual Funds, these funds invest in stocks. The risk depends on the investment objective. Some funds invest in high quality or blue-chip stocks, and other invests in more speculative stocks. The major difference in buying a fund rather than individual stocks is that you own many stocks, and you don't have all your eggs in one basket. These days increase markets are cyber-markets with buying and selling occurring via online real-time matching placed by buyers and sellers. The movements of the prices in a market or section of a market are captures in price and Stock Market Indices, of which there are many.

The Stock Market Crash, "what a risk." The stock market crash; a sudden dramatic loss of value of shares of stock in corporation often follow speculative stock market bubbles such as a dot-com boom. The most famous crash in 1929, (known as Black Thursday) when the Dows Jones Industrial dropped 50%, preceded the Great Depression. The succeeding years saw the Dow Jones of over 85%. The stock market downturn of 2002 was part of a larger bear market that took its highs and broader indices down 30%. The stock market crashes are driven by panic as much as by underlying economic factors. The prospect of further daily drops in the value of stocks persists, a bear market, equity investors expected to persist.

Money Market Accounts- Asaving accounts that offers the competitive rate of interest real rate n exchange for larger than normal deposits. Accounting method in item of taxation the method by which income and expenses are determined for taxation purpose. Earning the net income of a company during a specific period generally, but not necessarily, referring to after tax income. They show how profitable company is. Profit and loss statement the portion of a company's financial statements that summarizes revenues and expenses during a specific period of time.

Unrealized loss a loss that results from holding a to an asset rather than cashing it n and officially taking the loss. Unrealized gain a profit that results from holding on to an asset rather than cashing it in and using the funds.

Roth IRA their are specific requirements required by the U.S. Internal Revenue Service the main advantage is its tax structure contribution does not require individuals to pay taxes again on this money. Retirement plan available in the U.S. Wince after a section of the 1978 Internal

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