Investment objectives are different for different people in their life. They are all depending on risk and return factor. It also depends on an individual how they manage their risk. This phenomenon is called risk-aversion, “people need to be compensated with proper return against the value of the risk they take”. The main goals of this project are to investigate possible investment opportunities, logically evaluate their corresponding risks and benefits, and make refined investment judgements. Investing money into unpredictable, unstable, and uncontrollable components can be extremely risky. However, with intelligent decisions, investing can yield significant capital gains, stability, and security.
The goal of your investment decisions should be on three important characteristic that is safety, income, and growth of capital. The success of one of this objective must demand the expense of other. Not all investments are safe and secure, but we can come close to eventual safety for our investment funds. Most of the time safe investment has a low rate of income. Investors have to sacrifice safety to increase the rate of income. They have an inverse relationship. The investors who are seeking capital gain generally considering for long-term growth.
For this project, I have hypothetical $100,000 to invest and analyze the investment decision over 10 weeks.
Financial Investment opportunity
The hypothetical $100,000 I can invest in stocks, bonds, mutual funds, exchange-traded funds, or money market funds. One needs to know the characteristics of each investment for the best and suitable investment decision.
Invertors become a part owner of a business upon buying that stock. This enables investors to vote for the com...
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...are expecting to exceed the earning growth than the earning forecasted. In starting February, 2016 the oil price is running higher because of the agreement between Saudi Arabia and Russia on freezing oil production.
Figure 4: Stock Price graph for BP p.l.c.
The investment experience was successful both in terms of financially and in exposing to the stock market. I initiated this experiment with very little knowledge about the stock market and ended up having a net profit of $4072.7. The stock market can be profitable by having an effective investment strategy. This experiment was for very short term investment. But defiantly for a long term investment, the investment in a right stock in very important. With more research and experiment, one can have more profound understanding of the stock market, investor’s point of view and the US financial system.
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