The interest rate of a savings account at a commercial bank is 0.1%. The interest rate being so low indicates that there is low risk with the people’s money. Because money in saving account is F.D.I.C. Secured up to $250,000, it is highly unlikely for a person to lose their money in it at all.
Checking accounts in commercial banks have no interest on their money. In general the money in checking accounts are high in liquidity, which makes them easy to use for paying bills. Putting money in a checking account puts your money at no risk, and guarantees a safe place to store your money.
A Certificate of Deposit, also known as CD, is a different type of account. You can put your money in it from three months to up to five years. CD’s are F.D.I.C
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The positive of Municipal Bonds is that you get your money back with interest and compound interest, as well as you see the direct effect of your money in the community.
Junk Bonds are extremely risky bonds, in which companies usually use to make quick money. Although they are risky, high risk means high reward, if the transaction is successful.
A Mutual Bond Fund is a fund primarily in bonds, as well as other debt instruments, issued by the government or other corporations. Most of these funds are designed to provide interest income for the shareholder.
Stocks are a way companies raise capital off of their business by selling partial ownerships of itself to the public. They are considered extremely risky, because of a business crashes you lose all your money since it is not F.D.I.C insured.
A Bond is a debt security, and they are comparable to loans made to companies. Stocks on the other hand issue ownership stake in a
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When a person holds a lot of stocks in one company they are at risk of losing money if the company does not succeed. Putting all financial securities into one firm is a high risk move.
A dividend is a sum of money paid regularly to the company 's shareholders. The money is paid out of the company 's profits or reserve.
A Stock Mutual Fund aim to provide long-term growth, unlike bond funds, which focus on income. It gives your money a chance to grow over the long term. In exchange for more growth people likely to experience more ups and downs in the value of your investment.
Stock Mutual Funds have many advantages. They are low in risk, which makes them a safe place to put your money. Stock Mutual Funds can be purchased in small quantities which makes it easier to manage for beginning investors. The Funds can also be added to whenever the investor wants, and it can be in small quantities. Stock Mutual Funds are also heavily regulated by the Federal Government, which keeps them safe from theft and
Debt capital refers to money borrowed. Examples of this include bonds and short-term commercial paper. Bonds are more widely used because it provides a company with years to come up with the principal while paying interest only. Bonds are rated (i.e. AAA, AA, BB, etc.), these ratings correspond to the risk of default. The higher the rating, the lower likelihood of default and therefore a lower interest rate accepted by the lender. Short-term commercial paper is typically...
...g is also important in fulfilling financial obligations such as debt capital, annuities as well as savings. An effective personal financial plan should manage risk through diversification of investment capital, and the stock market provides investors with a viable option for diversification. Investing in stocks is considered one of the most profitable alternatives of personal financial planning, and is generally included to financial plans as an investment vehicle for additional income streams. Investing in stocks also has several benefits, key among them being increasing current and future cash inflows from investments. In addition, stocks offer investors a viable option through which they can achieve their financial goals for retirement, saving or consumption. Stocks are therefore useful securities that can be used to build wealth and secure financial stability.
Highest returns. Stocks have given the one of the highest historical returns among the various asset classes over the long term.
Money Market Mutual Funds (MMMF) were first established in 1971, and they are a type of mutual fund that is required to invest in low risk securities. These securities include highly liquid assets that have short-term debt such as: Commercial Paper, Certificates of Deposit, US Treasuries, and Repurchase agreements. MMMF’s hold a net asset value (NAV) of $1 per share, while the change in interest rates reflect the yield earned for investors. MMMF’s are an attractive place for investors to keep money because they can be tax-free or tax deductible, also there are usually fees to enter or wi...
Another of the hybrid types is the income bond, which has a fixed maturity but on which interest is paid only if it is earned. These bonds developed in the United Statesout of railroad reorganizations, when investors holding defaulted bonds were willing to accept an income obligation in exchange for their own securities because of its bond form; the issuer for his part was less vulnerable to the danger of another bankruptcy
Common stock is a term that is synonymous with investing; it is ownership in a public company. The stock owner is granted voting rights in addition the ability to receive dividends. It is a common terminology that is heard frequently in terms of the daily performance of the stock market whether it was up or down.
Sometimes individuals consider becoming counselors after overcoming some major life challenge such as addiction or a history of bad relationships. Perhaps an individual has encountered a particularly effective counselor or therapist and has a desire to follow in those footsteps. Others may have had a bad experience with counseling and concluded that it can be done better. People do not think of this work so much as a job, or even as a career. More typically, a constellation of life experiences that demand explanation and a sense that others seek one out for assistance and emotional sustenance become driving forces leading one toward the counseling profession” (An invitation to). .
By Morningstar, Inc. concentrating more on mutual funds, rather than stocks and bonds would be a positive move for the business because they will be assisting more individual investors who are having a problem making a decision regarding how to invest (Ferrell, et al., 2016). Furthermore, mutual fund investments are the best investment for clients who are too busy to do their own investing in the market (Ferrell, et al., 2016).
It also touches down on the personal gains, and potential risks that are associated with the helping career by explaining methods for controlling those risks by seeking counseling or talking to a supervisor. The explanations of whether or not a person is getting into the helping career for themselves or to help others is put together in a way that the reader can easily understand and reflect on. Personal accounts from Marianne Corey and Jerry Corey were helpful to the reader to be able to see some conflicts that others who were once in their shoes faced and how they persevered. From reading their accounts, I was able to come to the realization that in my future career, I need to explore the options that are available in the different fields of counseling. When I am in classes that I enjoy I need to make notes of what I enjoy about the subject and try to see what that field of work has to offer. The chapter is an excellent reference to what a good helper is, and how they take care of themselves as well as the people they are assisting. Overall, the first chapter was very helpful with the descriptions, examples and also job listings that are available to people pursuing a
Counseling skills has provided me with a valuable insight into the helping relationship and how it is both created and maintained in order to encourage growth and development in the client. The factors involved within the helping relationship include considering Roger’s core conditions, congruence, unconditional positive regard and empathy as the three main characteristics necessary in a helping relationship. In order to fully incorporate all three of Roger’s core conditions, I as the counselor must be self-aware, as a lack of self-awareness may inhibit truly listening and understanding the client; self-awareness can be enhanced through exercises such as Johari’s window. Counseling skills such as body language and active listening also plays a role within encouraging the client to open up and can help me as the counselor convey empathy.
Zero coupon municipal bonds combine the benefits of the zero coupon instrument with those of tax-exempt municipal securities and offer the following advantages:
Initially, I thought that counseling would be a profession that would take serious adjustment in establishing roles as a counselor, in that my initial perceptions have changed from when I first started the program here at Adams University. When reviewing the article by Moss, Gibson, and Dollarhide (2014) it becomes important to attempt to identify as a clinical counselor, and to understand the basic foundations of counseling. The key philosophies of the counseling profession, inasmuch, wellness, resilience, prevention, and self-care are important to learn in studying a profession that takes many hours of dedication and practice. It is also important to be able to articulate the components and characteristics of counseling, moreover, understand
The stock market is one of the most important sources for companies to raise money. It allows a business to be publicly traded and raise money to expand by selling shares of ownership of the company in a public market. The maneuverability that an exchange affords the investors gives them the ability to sell securities more easily. This feature alone makes the stock market more attractive compared to other less liquid investments.
Diversification - By owning partakes in a common reserve as opposed to owning individual stocks or bonds, your danger is spread out. The thought behind enhancement is to put resources into an extensive number of a~sets so that a misfortune in any specific venture is minimized by increases in others. As it were, the more stocks and bonds you claim, the less anybody of them can hurt you (consider Enron). Vast common supports ordinarily own several distinct stocks in a wide range of businesses. It wouldn 't be feasible for a financial specialist to fabricate this sort of a portfolio with a little measure of
2. Coupon rate( It is the nominal interest rate that the issuer pays to the bondholders. The bondholder will received return in the form of coupon instead of dividend. It could be pay monthly, quarterly, semi-annually, or annually. However, most bonds pay every semi-annually (six months).