Unit 3 Db for Financial Management

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American InterContinental University FINA310-1301A-02: Professor Michael James February 26, 2013 I am currently employed by a huge investment company and I wrote a position article on the business’s way of investing for small investors. This article produced e-mail answers from possible customers, and my business wants me to answer their questions. A few of these e-mails have labeled investments in the stock market as a no-gain situation. Potential customers want an explanation that analyzes the primary thought concerning risks in these kinds of positions. Within this assignment, I’m going to talk about the cons that small investors deal with in the stock market as well as the pros that are sometimes given to these small…show more content…
Due to this, small investors have a small investment history, and also because of this, brokerage businesses will charge fees that the larger investors do not have to pay. When I first started investing in stocks, the minimum payment that I had to pay was around $5500. This is proof that small investors have large minimum payments. Some pros for small investors are that they can take part in stocks that have fewer problems. Large investors are not able to purchase small stocks due to the fact that the prices will rise. As stated before, a lot of brokers do not have the investors’ best interests in mind. After money begins to be made, a broker is able to buy and sell indefinitely. Small investors know that they are the only ones looking out for their best interest (Kumar, 2012). Sometimes, there is panicking in the stock market, and investors might decide to withdraw from their positions. Large investors do not have that option because they have large amounts of money invested in certain stocks. If they do opt to withdraw, the market will not be working in their favor. On the flip side, small investors have the option to take themselves out of the market (Brooks, 2010). Even though small investors do not have diversity, they have the ability to focus and do well on a
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