MURRAY AND FAMILY

Murray and Family

Murray and Family

(a)

The main theme for the Fred Murray is the growth of wealth and the return on our investment. As we have seen there are long-term investments and other investment options in the short term. In both cases, making money is the main objective. Here are some examples

Short-term investments

Savings Accounts: Savings accounts generate small amounts of money earned from interest. Although these gains are often short of money, it will always be better to have kept our money under the mattress (Meyers, 1997, 87-94).

Money market funds: These are a specialized fund of funds. This is invested in short-term bonds. This type of investment generates a little more returns than savings accounts.

Certificates of deposit: A specialized deposit you make at a bank or other financial institution. The interest rate is very similar to that we generate term bonds (Jane, 2008, 25-28).

Long-term investments

Bonds: The bonds can be achieved in several ways. They are known as "fixed income" securities because the amount of revenue generated each year bonds are fixed.

Actions: Actions are a way for individuals to own parts of a company. An action is a proportionate share of ownership of a company. Since the value of the company changes, the share value rises or low.

Investment funds: This is a way for investors to get together money to buy stocks, bonds or anything else that generates money (John, 1996, 15-17).

Debt

Investing in debt securities is to invest in the purchase of securities or financial assets such as bonds, debentures, bills, notes.

investment horizon, investing in debt securities investment is usually a medium to long term.

returns: investing in debt securities usually has a limited return.

risk: the risk to acquire debt securities is generally low.

capital requirement: the amount of investment required to start investing in securities generally certainly not high.

degree of difficulty: investing in debt securities usually presents no greater difficulty, but requires certain financial and market knowledge.

degree of liquidity: some debt can be converted easily to cash, although for others, not true (Lawrence, 2008, 32-47).

Closed-end funds

They are much more exclusive. They are few and often for specialized financiers who know how to move in this business. Investors put their money and they can not withdraw before a certain date.

From that date, the fund begins trading on the stock exchange, where you can buy and sell the shares issued in the beginning. After a few years, investment by the fund will profit or loss, so their actions may increase or decrease in value. Therefore, it is necessary to know very well how to act in such a context, which is essential to know when to sell and when to buy.

Actions

Investing in stocks is the greatest gain may give short term or greater loss that may result.

It happens that when you purchase a stock, you are starting to own (albeit in a small part) of a company. Thus, you will participate in an organization that can go well or badly, depending on relatively unpredictable external ...