Question: Advise the Sampsons on whether they should invest their money
Advise the Sampsons on whether they should invest their money each month in bank CDs, in stocks, or in some combination of the two, to save for their childrenâ€™s college education.
Answer to relevant QuestionsThe Sampsons are considering investing in an IPO of a high tech firm, since they have heard that the return on IPOs can be very high. Advise the Sampsons on this course of action. How do interest rates affect economic growth? Why do interest rates affect some stock prices more than others? Which federal agency influences interest rates? What are Electronic Communications Networks (ECNs)? How are ECNs used? What is a bond? What is a bondâ€™s par value? What are coupon payments, and how often are they normally paid? What happens when investors buy a bond below par value? When should you consider investing in bonds? Describe the maturity matching strategy of investing in bonds. Give an example. Why is this strategy considered conservative?
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