Question

Faisal and Torie each want to make an investment, but they have different needs. Based on the information, which investment options is Torie more likely to choose than Faisal?

Answer 1

Answer:

The correct answer is: Money market account, stocks, futures.

Explanation:

Money markets are those where short-term assets are traded. These assets are characterized by their high liquidity and low risk. Generally, money markets are mostly unregulated and informal markets, where most of their transactions are carried out by telephone, internet, fax, etc. The objective of the money market is to offer banks, public institutions, savings banks, etc. (Which act as economic agents), securities and securities with great liquidity in exchange for their wealth.

Shares is the best known investment modality and, usually, the first with which the beginning investor usually makes contact. This type of products represents a security that is issued by a company to increase its capitalization and / or solve financing problems. It is characterized by being a variable income product, whose profitability is subject to market volatility. An action is a proportional part of the share capital of an anonymous association. It represents the inheritance that a person has of a part of that grouping. Normally, except for deviations, the shares are autonomously transferable and grant economic and political rights to their holder (shareholder). As an investment, it involves an investment in variable capital, since it does not have a fixed return established by agreement, but depends on the good unemployment of said company

A financial future is a buy-sell operation that consists in determining the conditions today but postponing the actual execution of the operation to another time (also perfectly defined) in the future. The buyer of a future contract has the obligation to buy the corresponding asset (shares, raw materials, etc.) on the expiration date, and the seller of that same future contract has the obligation to deliver the asset to the buyer in said expiration date.