Raising Individual Financial Awareness

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Assignment for Raising Individual Financial Awareness

Student Name: XuBin Dong
Student NO: 09126172
Date: 09, November, 2010

Question (a)
Fred Murray has inherited 40,000 pound from his grandfather, and he wishes start a new business venture in one year time before use this amount of money to purchase a new car and a new synchronize music system. As he asked for some advisers to deal with his capital in the meantime in order to achieve his goals, here are some advisers below which might available to him: 1. Shares

Why buy shares? According to Share Crazy (2008), Shares basically are a part of business, when you purchasing shares, you are also purchasing ownership of a part of company. Although buying shares could receive dividends even capital growth in a short period, however, share prices fluctuate a lot, which distress investors in the short term. As Fred Murray wants to achieve his goal as soon as possible, he could invest 5000 pound of his capital for buying shares and might receive a positive dividends, although this method is risky, however it has a potential possibility of earning. 2. Corporate Bonds

According to Investopedia (2010), corporate bond is a debt security issued by a corporation and sold to investors. As guardian (2010) claims, bond funds have been very popular with investors during the recession, and bond funds have been the bestselling fund in the past 6 month of the year. Therefore Fred Murray could invest 10,000 out of 40,000 into a corporate bond, such as a bond calls “Artemis Strategic Bond Quarterly Inc” which is managed by James Foster and Alex Ralph in a flexible way. Fred Murray might receive good revenue after a quarter. 3. Cash ISA (Individual Savings Account)

According to ISAs (2010), ISA is a financial product available to residents in the UK, and it is designed for...
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