Today I learned A LOT! Last class I was absent so I was a little behind with the Finance unit in terms of terminology and concepts but during my independent time, meeting with James Barnette and class discussions I was able to catch up and learn many many things.
Meeting with a real financial advisor was a very cool and unique opportunity; having this opportunity to experience taking to a financial advisor while doing this project truly made me feel as if it was a real life thing, therefore I had more intrinsic motivation to do this project good. It gave me a true essence of what people in the real world do as they create and develop investment proposals for real investors.
One of the t things I learned in the meeting with James Barnette was about risky and safe investments.
Risky: invested in the stock market, very volatile
Safer: bond market- prices don't tend to go up and down much
stock market-> more money -> higher level of risk
things that are steadier-> don't grow as much
I also learned that if you want to make a long term investment stock market is the best way to go. Stock markets are very risky since it depends weather a company grows or not, but it's been shown that companies grow through out the years so certainly there will be a gain there. Also there maybe a down or decrease as time goes by but the company will always grow and gain back. (See graph)
Moreover I learned about a very cool term called risk return trade off. What this concept explains is that the more risk you are willing to face the more you will have in return. Time reduces risk, this is because companies grow over time.
Finally I also learned about IPO, at least now I am able to understand it. I remember last week when we did the independent reading for the first time and I came across an article in Fast Company about Twitter filing an IPO. I remember about closing down the article because I didn't understand anything but today I was able to learn about it, so I went back to the article and it was very cool because I was able to understand much more of it. IPO stands for Initial Public Offering which is the first time a private company is willing to share or sell a stock to the general public.
http://www.fastcompany.com/3017372/twitter-has-filed-for-an-ipo
Meeting with a real financial advisor was a very cool and unique opportunity; having this opportunity to experience taking to a financial advisor while doing this project truly made me feel as if it was a real life thing, therefore I had more intrinsic motivation to do this project good. It gave me a true essence of what people in the real world do as they create and develop investment proposals for real investors.
One of the t things I learned in the meeting with James Barnette was about risky and safe investments.
Risky: invested in the stock market, very volatile
Safer: bond market- prices don't tend to go up and down much
stock market-> more money -> higher level of risk
things that are steadier-> don't grow as much
I also learned that if you want to make a long term investment stock market is the best way to go. Stock markets are very risky since it depends weather a company grows or not, but it's been shown that companies grow through out the years so certainly there will be a gain there. Also there maybe a down or decrease as time goes by but the company will always grow and gain back. (See graph)
Moreover I learned about a very cool term called risk return trade off. What this concept explains is that the more risk you are willing to face the more you will have in return. Time reduces risk, this is because companies grow over time.
Finally I also learned about IPO, at least now I am able to understand it. I remember last week when we did the independent reading for the first time and I came across an article in Fast Company about Twitter filing an IPO. I remember about closing down the article because I didn't understand anything but today I was able to learn about it, so I went back to the article and it was very cool because I was able to understand much more of it. IPO stands for Initial Public Offering which is the first time a private company is willing to share or sell a stock to the general public.
http://www.fastcompany.com/3017372/twitter-has-filed-for-an-ipo
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