Share Ownership by Individuals.
Did you know owning shares means tax advantage. Your tax situation can benefit from using the tax advantage that come with fully franked dividends.owning shares also means you are a company owner. When you are buying shares you are buying the company`s asset and its profits. All that told there many advantages that come along with purchase of shares by an individual who wishes to invest his capital in shares.
Benefits of Owning Shares.
1. Stock Owners Take Advantage of a Growing Economy.
As the economy grows so do cooperates earning that is because economic growth creates income this will create a consumer demand that will automatically drive more revenue into companies register an lead to rise company`s share value.
2. Easy to Buy.
The stock market has made it easy to by shares from companies. They can be purchased through a broker, financial planner or online. Once you have set up an account you can stock at any minute. The stock market runs 24 hours, five days a week making the market reliable and sufficient.
3.They are the Best Way to Stay Ahead of Inflation.
Historically stocks have averaged an annual return of 10%. That is better than the annual inflation of 3.2%. It means you have a longer time horizon. That way a stock owner is limited to the risks aligned with the stock market.
4. They are easy to sell.
The stock market allows you to sell your shares at anytime. That will surely help if you really need the cash in a hurry. One disadvantages related to this is that the prices are really volatile so the shareholder runs the risk to make losses when the make haste decisions.
5. You make money in two ways.
Many investors tend to by shares when they have low prices and sell when they are high. They invest in companies that appreciate in value at at either a fast rate or moderate rate. This attracts both day traders and buy-hold investors and this bridges the gap in making money in to ways.
Summery.
A well defined portfolio will provide most benefits and fewer risk arising to stock ownership. to exchange you shares at a limited risk and get to earn more experts advice apart from stock ownership alone have a mix of stock bonds and commodities. This has proven to be the best way to make highest returns at lower risk. It is important to note that shareholders in stock market contribute close to 80% of the revenue in the market.
Given the above scenario, the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.
<h3>What is product maximization?</h3>
Product maximization refers to the process via which two trading nationalities or entities focus on the goods where they have the least opportunity cost.
Thus, n this case, the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.
Learn more about Product Maximization at;
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Answer:
Venture Capital
Venture capital is the type of partnership in which two or more than two firm or people invest in a project or assets that has higher tendency of returns payback.
Answer:
Explanation:
1st strategy : Selling pound forward
The spot rate of the pound is quoted at $1.51.
The one-year forward rate exhibits a 2.65% premium.
The one-year forward rate = 1.51 ( 1+ 0.0265)
= $ 1.55
Dollars received = 100000 * 1.55 = $155000
2nd strategy : Buying put option
The strike price of put = $1.54
premium on option is $.03
Amount received per option = $ 1.54 - $ 0.03 =$1.51
Total Dollars received = 100000* 1.51 = $ 151000
the best possible hedging strategy is Selling pound forward and receiving $155000
Answer:
6.96%
Explanation:
Find nominal expected return;
Nominal expected return = [(Dividend + New Price -Old Price) /Old price]*100
= [ (1.74 +50.10 - 47.10) / 47.10 ]*100
= (4.74 / 47.10)* 100
= 0.100637 *100
=10.0637%
Real rate of return = Nominal return - inflation rate
Inflation rate = 3.1%
Real rate of return = 10.0637% - 3.1%
= 6.96%
