Investing BasicsType of InvestmentDescription—explain what it is and how it works.Level of Risk and Potential Return—explain.Real-life example of this investment (name or company)Minimum investment amount or time? Easy to start or stop investment? Discuss.CDIs a time deposit, a financial product. CDs are similar to savings accounts in that they are insured and thus virtually risk free; they are ‘money in the bank’. Usually a low-risk because they are insured. CD-Ally Bank CD’s require a mininum amount of money to invest. They hard to stop because you have to pay a fee if before a time you set.IRAIndividual Retirement Account (IRA)—a portion of a person’s income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities. Employers might contribute to the account as a benefit to employees.Varying risk levels because of who is in charge. Charles Schwab There is no minimum to deposit but a limit on how much money could be deposited. JUst like Cd’s if you want to stop before time is up the bank will take a fee.MMAis an interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check.StocksUsually you can’t just buy one stock—must invest a minimum dollar amount. For a large company like McDonald’s, the high start-up cost deters personal investors ($50,000 in 2012).Bonds30-Year Treasury Bond—U.S. Department of the TreasuryMutual FundsFuturesHigh (Aggressive)—Have a potentially large return relative to other investments but also are considered the riskiest.Traditional Bank Account
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