Connie Quan

Finance 4th Period

Final Assignment #3 (50 pts)
12/9/17
Final Score: 50/50

Different Kinds of Investments

Organizational Chart
Type of Investment Process/Definition Pros & Cons Examples
Pros: Rights to vote in shareholder meetings, Ticker Symbol & Current Price of One Stock

Stocks
Stocks are shares in the ownership of a company. It
represents a claim on the company’s assets and the ability to receive dividends in some cases Google: GOOGL $1049.43 (↑4.81 / 0.46%)
earnings, so as you acquire more stocks, you acquire
(a percentage of the company’s profits) Microsoft: MSFT $84.16 (↑1.67 / 2.02%)
more of the company. A company has to first “go
public” with an IPO (Initial Public Offering) and sell all
Cons: Stocks fluctuate frequently between up Target: TGT $61.37 (↑0.28 / 0.46%)
of that before being able to put out stocks for and down, can result in loss of profit, generally Berkshire Hathaway: BRK.A $294,385
consumers to buy. You can buy stocks through a higher risk (↑25.34 / 0.01%)
brokers or directly through companies.

Pros: Interest rates, generally lower risk, less

Bonds
Bonds are similar to loans the consumer gives to
the company. This money you loan them must be
repaid over time and buyers of bonds are
essentially lenders. Interest is usually paid over
the time you lend money along with the repayment
from the company.
chances to fluctuate, has some legal
protection
Cons: Price can change, chance to lose bond if
company goes bankrupt, company can choose
to repay bond early (meaning less interest)
Some Types of Bonds
Treasury Bonds: issued by government, backed by
authority, typically lowest profit
Corporate Bonds: issued by companies, higher profit
Foreign Bonds: issued by overseas personnel, money
is returned in another currency, profit changes with
exchange rates

Pros: Diversification, expert management in

Mutual Funds
Mutual Funds are pools of money from many different Mutual Fund Companies
investors to increase the buying power of the handling portfolios, convenience, typically ● Morning Star INC.
investment as a whole and to diversify your portfolio ● T. Rowe Price
affordable services
of what you invest in. Mutual fund money managers ● Fidelity Contrafund
control what your money is invested in.
Cons: No control over what is invested, fees
● Franklin Templeton Investments
and expenses of the service
Connie Quan
Finance 4th Period
Final Assignment #3 (50 pts)
12/9/17
Alternative Investments cover other kinds of Pros: Material item or house can rise in value Examples

Alternative investments like real estate purchases or

items that will retain, grow, or lose value over
time.
(sometimes by a lot), value can increase over
time
Cons: Item or housing property can lose it’s
●
●
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Houses/Property
Coins that are no longer produced
Cards
(Real Estate/Objects) value and depreciate, these depreciations can
sometimes be unpredictable and large
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Art pieces
Other collectibles