Commerce Investing Essay

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Pages: 2

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INVESTING

Question 1

What is the difference between saving and investing?

Savings are low risk that may be available when you need them and investing is high risk and is used for building wealth over a number of years.

Question 2

How could YOU commence an investment portfolio?

To commence an investment portfolio you must develop a plan. Decide how much money you are willing to invest, including borrowing. Research that is the best interest opportunities as part of a cash investment. Investigate opportunities in property, leasing and buying. Look at the share market for possible quick returns, and longer returns. Look at what your aims are to give the result you are after.

Question 3

What is ethical investing (investment)?

Ethical investing is when you are being socially and environmentally responsible when selecting investments.

Question 4

Draw a graph showing the difference between Risk and Return?

Question 5

What is the purpose of the share market (Stock Exchange)? How can it help create wealth for you?

The purpose of the stock market is so that companies can raise money. This allows business to be publicly traded, or raise additional financial investment by selling shares to the public. When shares rise from the price you bought them for it is making money for you.

Question 6

What is the “all ordinaries index”? How else can changes in the stock market and the value of shares be measured?

The Ordinaries

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