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Essay / Research Paper Abstract
This 10-page paper discusses investment opportunities and instruments including stocks, bonds, mutual funds and real estate. Geared toward the "casual" investor, the essay discusses what the investments are, as well as their benefits and risks to the investor. Bibliography lists 7 sources.
Page Count:
10 pages (~225 words per page)
File: D0_MTinvinf.rtf
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Unformatted sample text from the term paper:
those who were wealthy enough to afford mansions. These days, however, bank accounts are only one way in which the average person can
earn some good money off an investment. Thanks to technology and new trends in investing, a person can play in the stock market, put money into mutual funds or bonds
or purchase real estate and expect to get a decent rate of return, provided the right decisions are made. The purpose of this
essay is to delve a little deeper into the types of investments that are available today. The paper will then explain the characteristics of the investments, the risks involved and
which are likely to provide greater rates of return. An Overview of Investing What, exactly is investing? In its simplest form, investing is
when a person puts something of value (such as money, time or effort) into something else in order to achieve something larger (Motleyfool.com (b), 2002). People who invest do so
with the assumption that something good will come out of this action (Motleyfool.com (b), 2002). Those investing in a financial instrument such as a stock or bond also have expectations
- they expect that the value of these instruments will increase over time (Motleyfool.com (b), 2002). Therefore, the basic premise of investing money is to create wealth (Motleyfool.com (a), 2002).
Wealth is created through what is called the "power of compounding," in other words, as the investment begins to gain (return) money, those returns begin to earn more - and
as the gains grow larger, so do the returns (Motleyfool.com (b), 2002). Investing money means putting the money into a "security," so
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