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Q: Why is a high-quality bond typically considered a lower-risk investment than a stock?
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Is college considered a financial investment?

Yes, college is a financial investment. Typically, it brings a lot of student loans, so you will not see the investment until after the loans are paid off.


The return on investment (ROI) from education is typically the highest for?

a college applicant


When you make an investment you trade between what?

An investment will typically involve someone trading money for a certain share of the company or future company.


Information technology typically requires a small investment over a long period of time?

No


What services do small business investment companies provide?

Investment companies are typically involved in three activities: investing, reinvesting, or trading securities; issuing face amount certificates of the installment type; and holding investment securities


What is the advantage of a short term investment?

The advantage of short term investment is to get a maximum return in the shortest time possible. This is typically done by seasoned investors who are confident of a sure hit.


What kind of fee structures do investment services businesses typically use?

Investing is often times very difficult. The average investment service business typically uses a mutual fund in order to manage their finances. Which is one of the easiest and most effective forms of investing.


Safest Investment in these times?

In times of uncertainty, the safest investment option is typically considered to be government bonds or Treasury bills. These are backed by the full faith and credit of the government and have a low risk of default. Another relatively safe investment option is a high-quality corporate bond. However, it's important to note that even these investments come with some level of risk, so it's always wise to diversify your investment portfolio.


What is the difference between investment and consumption assets?

Investment assets are assets that are held for investment purposes. Some examples are: Gold, Silver, Bonds , Stocks. Where as a consumption asset is an asset that is typically held for consumption. Some examples are: Oil, Copper, Cattle.


What time frame is considered a short term investment?

A short-term investment typically refers to an investment that is held for a period of one year or less. It can involve buying and selling stocks, bonds, or other financial instruments within a relatively short period of time in order to take advantage of short-term price fluctuations or market opportunities.


Would idle cash in a bank checking account classified as a short term investment?

No, idle cash in a bank checking account is not considered a short-term investment. It is simply cash that is not being actively used or invested. Short-term investments typically refer to assets that are expected to be converted into cash within a year, such as Treasury bills or money market funds.


When the cost method is used to account for an investment the carrying value of the investment is affected by?

the purchase price of the investment plus any additional costs incurred to acquire and maintain the investment, minus any portion of the investment that has been sold or distributed. The carrying value is adjusted if there is a decrease in the value of the investment as well, typically recorded as an impairment charge. The cost method does not take into account changes in the fair market value of the investment.