Financial tools and reflection - Presentation of an investment plan

Extract

[...] Stocks: Most people who invest in stocks do so with the expectation of capital gains when they sell them. Like anything else sold on an open market, the price of stocks is determined by supply and demand. However, being directly related to supply and demand, many external factors (innovation, company image, etc.) can influence the value of the stock, making it more or less attractive to the investor. Investment plan With 50,000 dollars to invest, it is advisable not to invest with too much risk. [...]

[...] In this way, two investments are made without great risk, both of which are guaranteed either by the bank or by the state itself, and since the states are economically considered to have an infinite life, the investment is perfect. Finally, it is necessary to detail a little where to place the 15000 dollars in the shares. Indeed, it is necessary to understand that on the stock market certain shares are not at risk or at least present only a weak risk compared to the average. [...]

[...] Thus, the gains are much higher than the previous investments, and the risk, although factually higher, is much lower. To summarize, I have decided to make investments that are very different from each other. In fact, they involve increasing risks, but the major part of the funds it remains practically completely guaranteed. Thus, the interest is that in case of bad economic conjecture all the invested capital is not lost. In conclusion, diversifying your assets by gradually increasing the risks allows for real monetary gains without taking the risk of not making any profit or even losing money. [...]

[...] Bonds: A bond is a security that constitutes a claim on its issuer and is therefore representative of a medium- or long-term financial debt, sometimes even in perpetuity. The issuer of a bond is the borrower; the subscriber or holder of a bond is the creditor. Thus, the bond is risky depending on the creditworthiness of the borrower but also depending on the market which influences the price. A futures contract: is a contract to buy or sell a commodity at a specified future date and price. [...]

[...] Financial tools and reflection - Presentation of an investment plan Preliminary explanation Bank account: Saving your money at the bank in a current account is the least risk since this money is partly guaranteed in case of bankruptcy of the bank. Moreover, it is not at risk and therefore does not allow for interest earnings. CDs: Individuals and businesses can save excess funds in a number of ways, including savings accounts at commercial banks or S&Ls, certificates of deposit corporate or government bonds and stocks. [...]