Why is savings and investment so important to our economy? The obvious answer to this question...
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Why is savings and investment so important to our economy? The obvious answer to this question is that as more people save, there is more money for banks to lend and therefore, businesses grow, expand production and create more jobs. When people purchase stock in a company, they are helping that company to increase production, which in turn strengthens the economy. But, what's in it for you? How do individual savers benefit? The money we earn in interest is one way. If a company does well in the marketplace, more than likely stockholders will be able to sell their shares of stock for greater amounts than they purchased them, creating profit as well. Answer the following questions in complete sentences. 1. What are the differences between common and preferred stocks? 2. What makes investing in a mutual fund attractive? 3. Why is investing in government bonds better for those who do not wish to take risks? Why is savings and investment so important to our economy? The obvious answer to this question is that as more people save, there is more money for banks to lend and therefore, businesses grow, expand production and create more jobs. When people purchase stock in a company, they are helping that company to increase production, which in turn strengthens the economy. But, what's in it for you? How do individual savers benefit? The money we earn in interest is one way. If a company does well in the marketplace, more than likely stockholders will be able to sell their shares of stock for greater amounts than they purchased them, creating profit as well. Answer the following questions in complete sentences. 1. What are the differences between common and preferred stocks? 2. What makes investing in a mutual fund attractive? 3. Why is investing in government bonds better for those who do not wish to take risks?
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1 Common stocks represent ownership in a company and typically come with voting rights while preferred stocks often offer fixed dividends but usually do not have voting rights Additionally in the even... View the full answer
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