Jims emergency fund is in place and he just received a nice bonus of $10,000. He decides
Question:
Jim’s emergency fund is in place and he just received a nice bonus of $10,000. He decides he is going to invest in stock and he wants your opinion on how to invest. Jim is single, no immediate plans for the bonus money, loves adventure sports, and tends to be a risk taker but is very careful with his money.
a. In what type of industry would you suggest he invest?
b. In what market is the industry traded?
c. How would you value the stock offerings of the companies in the market?
d. Based on the findings above, would you support Jim’s decision to invest $10,000 in stock in that company?
e. How would Jim go about purchasing the stock?
f. What type of order would Jim use and why?
Step by Step Answer:
Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker