Financial Investment And The Investment

12. Describe an alternative investment that you might invest in someday, and explain why this investment is appealing to you. (2-4 sentences. 2.0 points) Peer-to-peer lending. It's a high return investment but also high risk. There are ways to invest in Peer-to-peer to minimize risk. It's a great alternative investment option.

Our approach is an active security selection with passive asset allocation. We invest heavily in common stocks, but vary our holdings to include companies of all sizes and industry groups. We seek to achieve sufficient diversification by abstaining from investing more than 5% of the total assets in a single security unless it has significant upside potential, and we make an exception for ETFs and index funds as they represent a basket of securities. Our main goal is to identify and invest in common stocks with high potential for both short- and long-term capital appreciation. Our secondary goal is to invest in common stocks with steady income. When potential for rewards are high, we also enter into derivative

According to Investopedia.com, “A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors.” Charles Ponzi was a businessman in the early 1900s. His scheme was promising his client’s 50% return within six months. When in fact, Charles Ponzi was using later investors’ money to give back to the early investors. This financial scheme has been repeated several times since then but in smalls ways changed. The most famous in recent news is Bernie Madoff. Bernie Madoff was a hedge fund investor. As a very famous hedge fund investor, Bernie Madoff was entrusted with individuals’ entire savings (cbsnews). In return, Madoff “cooked” his books and almost always had a positive return. Only in one month out of the year did Bernie Madoff record a down month. According to a 60 minute episode, this is equivalent to a hitter in baseball hitting, .960 (cbsnews). In the end Bernie Madoff lost almost all of his investor’s life savings. So this is another case of the Ponzi except at a bigger scale. These examples prove that although one could be wealthy, they always want

1. Testing many different trading rules until you find one that would have worked in the past is called _______.

This paper introduces Bernard L. Madoff a fraudster who orchestrated a multi-billion dollar Ponzi scheme. The paper discusses elements that make up a Ponzi scheme and explains what a Ponzi scheme is. The paper goes on to introduce some of the victim’s and examines some reasons why someone might fall victim to a Ponzi scheme. The paper describes the three elements making up the fraud triangle and how they relate to the fraud and the fraudster. This paper covers Bernard Madoff’s background and history and how he committed the fraud analyzing the fraud triangle. The paper describes ways to correct the issue, accounting principles violated, and recommendations for a fix. Finally, the paper looks at internal and external controls violated and ends with a conclusion.

It will be hard to ensure that Ponzi schemes like Madoff’s do not happen in the future, it is not likely that anything can stop illegal financial schemes from happening. No matter how strict the regulations, people with motivation to do so will always find loopholes. Clearly, regulation is necessary to create disincentives for Madoff-like schemes, but too much regulation can be very costly, time-consuming, and anti-competitive. International businesses would be less likely to invest in the United States if the legal and compliance system were excessively complicated or expensive. It is estimated that due to the Ponzi scheme, Bernard Madoff Investment Service lost 20 billion U.S. dollars of investment 8 billion dollars at R. Allen Stanford,

A Ponzi scheme is an illegal business practice in which new investor’s money is used to make payments to earlier investors. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. The returns are repaid out of new investors’ principal, but not from profits. This can continue as long as new investors line up with cash, and old investors don’t try to withdraw too much of their money at once.

ScenarioThe bank of TSB (Lloyds bank) is an investment bank involved in selling securities such as stocks and bonds to the public, as well as traditional scope of business such as deposit and loan. After graduation, you decided to join the bank as a financial advisor, to advice about market trends in specific securities, such as stocks, bonds, mutual funds, limited partnerships, and commodity pools, and the real estate such as coins, precious metals, then providing a selective list of products, finally try to offer the asset allocation advices. The bank has a large collection of guides, which cover everything from the basics of investing to information on investment risk and financial planning. Tom and Jerry are customers of your bank,

World Investments and Economics Prime Minister Tony Blair launched Invest. UK on 5 July 2000, saying: " Today's inward investment figures are a clear vote of confidence in this country and the economic policies we are pursuing.

So the investor will invest 32.58860806% of the investment budget in the risky asset and 67.41139194% in the risk-free asset.

What type of financial investments would you invest in if you were given 10,000 dollars, what made you choose these investments, as well as; how did your choices affect your decision as to tracking these financial investments through the usage of financial strategies and trends. While finding the right pecuniary investment to finance in is never an easy decision, one must first do their research as to what type of financial resources are available on the market to invest in; then apply those financial decisions and strategies to their financial market plan. Let’s begin with what a financial market does, “financial markets perform a vital function: they transfer funds from savers (individuals and organizations willing to defer using some

After around two months of trading with a starting amount of $1 million, the final financial outcome of my portfolio was a 13.44% return. My final portfolio composed of 43% Google, 13% Raytheon Co., 12% Facebook, 9% Estee Lauder, 6% Alibaba, 3% Texas Instruments, 3% Micron Technology, 3% Microchip Technology, 2% Nu Skin Enterprises, 2% Inter Parfums, 2% Broadridge Financial Solutions, and minimal securities that are short sell in Advanced Micro Devices and Commvault. Most of these holdings were of the same companies in the beginning, although the percentage holdings have changed and some of the stocks were sold to retain earnings and to get rid of securities with a large drops in value. These companies are mainly technology and personal

Carried premium or carry: share of the profit of an investment or investments fund that is paid to the investment administrator in abundance of the sum that the director adds to the partnership.

Personal investment is defined as an individual invest and manage their own financial instrument, such as, stocks, bonds, property and others. This personal investment is in aims of improve the liquidity and efficiency of the equity and capital of the individual. Basically, the individual investors have to develop their own investment plan and framework based on different characteristics of the individual investors. This is because the personal investment is very subjective, whereby it is totally based on the characteristics and the degree of risk tolerance of the individual investors. However, before investing into the financial instruments, the individual investors should develop an investment plan and strategy. This

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.