Investments Discussion
write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
Part 1
In your own words, define the following:
- Common stocks
- Preferred stocks
- Corporate bonds
- Municipal bonds
- American Depositary Receipt (ADR)
Part 2
Discuss the importance of asset allocation in constructing the investment portfolio. Make sure you address the following:
- Describe asset classes, including stocks, bonds, and cash.
- Explain the percentage of asset classes within the portfolio based on purpose and investor demographics.
- Discuss the stock–bond ratio for a conservative, moderate, and aggressive investor.