Chapter 19, Problem 1VC

Summary Introduction

Case summary: M Company provides helpful and unbiased advisory information related to investment, most of the people choose between stock and bonds. An individual can diversify his risk by buying stocks in different firms or any easy way of it is buying mutual funds. In the long run, advisory company recommends investing in stock as in later years the price of stock goes high. M Company also recommends people to invest in bonds, because in later time period the individual will get the amount plus interest. Investing opportunities and knowledge can be obtained not only from Company M, but also from other sources like newspaper, textbooks, magazines and many more.

Characters in the case: The character in the case is Company M.

Adequate information:

M Company provides unbiased advisory services which helps to make investment decision to the firms. It recommends people in investing in two of the options that are stocks and bonds.

To determine:

Is investing safe and the different sources of information used to make a decision about investment in stocks, bonds, mutual funds, ETFs and other investments.