Question: A Explain to Judd the structure of the investment process

a. Explain to Judd the structure of the investment process and the economic importance of investing.
b. List and discuss the other types of investments with which Judd is apparently unfamiliar.
c. Assuming that Judd already gets plenty of exercise, what arguments would you give to convince Judd to take investments rather than golf?
Judd Read and Judi Todd, senior accounting majors at a large Midwestern university, have been good friends since high school. Each has already found a job that will begin after graduation. Judd has accepted a position as an internal auditor in a medium-size manufacturing firm. Judi will be working for one of the major public accounting firms. Each is looking forward to the challenge of a new career and to the prospect of achieving success both professionally and financially.
Judd and Judi are preparing to register for their final semester. Each has one free elective to select. Judd is considering taking a golf course offered by the physical education department, which he says will help him socialize in his business career. Judi is planning to take a basic investments course and has been trying to convince Judd to take investments instead of golf. Judd believes he doesn't need to take investments because he already knows what common stock is. He believes that whenever he has accumulated excess funds, he can invest in the stock of a company that is doing well. Judi argues that there is much more to it than simply choosing common stock. She thinks that exposure to the field of investments would be more beneficial than learning to play golf.

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  • CreatedApril 28, 2015
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