curricular response
- Stock vs Bond
- What is the difference between a stock and a bond?
a stock is Investments in a company that rise and fall with the profit of the company.
A bond is a loan that you give to the company
- Risk
- How are risk and return connected?
a risk within the stock market is if a company goes bankrupt, you have to pay the debt first and whatever is left over gets payed to the shared holders. When a companies value drops so does the value of the stocks. So it’s a high risk reward situation if you invest and start up.
- What are some steps you could take to mitigate risk while investing in the stock market?
There’s a type of stock that lets you invest in little amounts of the company. If you put alot of money at once because if you put alot of money all at once that’s basically gambling your money. Another way to save your money is to invest in banks, because they never loose.
- What does it mean to have a “well balanced portfolio?”
a well balanced portfolio is when you have an equal amount between stocks and bonds. It allows you to help manage risk and maximize the return reward.
core competency self assessment
- How much information did you use to help you with answering the above questions?Has investing become a more approachable or attainable concept to you?
i used the videos provided and did some researching myself. I’ve always been interested in how to manage my money, so investments are something I’m always looking forward to learn.
- Which security tends to have the best returns?
Money market and cash and government bonds. In addition to the bonds it’s just a saver way to get awards.
- What is “rebalancing” a portfolio and why is it important?
its when your able to change the weight of assists. For example if you invest in oil stocks and it falls you are able to switch to an environmental friendly stock wish would have a higher award.
- What is something that you have learned which you have changed your mind about?
credit cards. They are such an essential thing to have but also comes with costs. If you aren’t able to properly care for the card, you can loose a lot of money. It can take years just for you to pay off your debt if you aren’t as careful.