Discussion Questions

Question description

answer in a non APA format,

1) answer / response

2 answer / response

minimum 75 words .

1)In our text, the authors suggested five ways of accumulating money to deposit into an investment account. What are the five strategies to accumulate money for an investment account?

2)What are the two types of stocks? Why do companies issue stocks? What is a dividend?

3)There are two types of stocks, there are common stocks and preferred stocks. Common stocks is the most basic form of ownership, preferred stock is the ability to give the owner the advantage of receiving cash dividends before common stockholders are paid any dividends. A dividend is a distribution of money, property and stock which other corporations pays to stockholders.

4)What are the characteristics of a mutual fund? What are the classifications of mutual funds?

5)Mutual funds gives the ability to have investors invest there large amount of investment into various other securities. There are several different types of securities with mutual funds, electric utilities is part of one of the top industries having a total percentage of 12.42% in the total assets. There are several different other securities that is part of many top industries. Furthermore, it is imperative that the classifications of mutual funds are known. There are three classifications of mutual funds, closed end funds, exchange change fund, and open end fund.

6)The steps for beginning a retirement account are:

1. To save money for retirement.
2. pay off debts to increase net worth in retirement.
3. Consider your assets and how they will affect your retirement money.
4. Think about spending patterns to figure out one’s basic needs in retirement.
5. Plan for emergencies.
6. Think about inflation when trying to figure a more accurate retirement number.
7. Determine your retirement income and the types of income you may receive like pension and retirement plans and annuities.