Investing in Stocks and Bonds
Stocks and Bonds are different in many ways. A stock is a portion or share of the ownership of a corporation. A share will give the owner of the stock the company’s profits or loses over time. The good thing about stocks is they can be sold at almost any time as long as there is someone willing to buy. A bond, on the other hand, is a fixed interest financial asset issued by governments, companies, banks, and other large entities. Bonds also are called funds. Bonds pay the owner a fixed amount a specific date, or on specified dates depending on the type of bond. If the bond is a discount bond, then there is one pay date at the end. If the bond is a coupon bond, then it pays a fixed amount over a specific time. The time could be by month, or by year. My team was assigned the task of investing 120,000 dollars over ten years. We were to invest 80% of 120,000 dollars in stocks and 20% in bonds. We invested in six different stocks and two bonds. Also, we split the money. Therefore, we each invested 6,000 dollars per year in three stocks and one bond.
The first stock I decided to invest in was Nike Inc. Nike Inc. is a strongly advertised and a well-distributed company (Nike). Nike Inc. is known well across the world (Nike). When it comes to shoes, clothes, or sports apparel, everyone has at least one item of Nike. In most cases, people own multiple things of Nike equipment. Nike Inc. spends great amounts of time and money on their products (Nike). Also, Nike Inc. is extremely popular among sports. That is relevant because I am an athlete, and own many Nike products. Almost every pair of shoes I own is Nike, besides dress shoes. This all proceeded to tell me, as an investor, to get involved in a part of the company. I took 2,000 dollars of the 6,000 dollars and invested in Nike Inc. Every year for ten years I bought 2,000 dollars worth of shares. The number of shares each year ranged from 24 shares to 42 shares...
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