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Investing in a widely diversified portfolio of stocks does not eliminate the risk that the whole market rises and falls?

no. If you are not a stock riots investor you should diversify because diversification is just protection against ignorance because a real investor won’t care about fluctuations in the market because they will care about the underlying value of a security. If you aren’t a serious investor then you should diversify. if you are a serious investor then you shouldn’t diversify because you know what your doing and you prefer down times so you can buy more undervalued securities.


In what circumstances might an investor prefer stocks that do not pay dividends?

An investor might prefer stocks that do not pay dividends when they are seeking capital appreciation rather than immediate income. Growth-oriented investors often target companies that reinvest their earnings into expansion, research, or innovation, which can lead to substantial long-term price increases. Additionally, non-dividend stocks can provide tax advantages, as capital gains may be taxed at a lower rate than dividend income. Lastly, younger investors with a longer time horizon might prioritize growth stocks to maximize their portfolio's potential.


What type of compounding would you prefer in your savings account?

The more often it is compounded the better. So daily is the best, next is weekly, monthly etc. The greater the number of compounding periods, the better it is for your bottom line.


How can one buy shares in the stock market?

As a beginning investor, it is wise to hire an experienced stock broker who can advise you regarding stocks to purchase and make the purchases for you. If you prefer to buy stocks online, many well-known companies like Schwab and Ameritrade can help you select stocks and keep you abreast of daily stock fluctuations.


Why manager might prefer the purchase of treasury shares to the payment of dividends?

Managers might prefer the purchase of treasury shares over paying dividends because it can enhance earnings per share (EPS) by reducing the number of outstanding shares, potentially boosting stock prices and benefiting shareholders. Additionally, share buybacks offer more flexibility since they can be adjusted based on the company's financial situation, whereas dividends create an expectation for regular payments. Lastly, repurchases can signal to the market that management believes the stock is undervalued, reinforcing investor confidence.

Related Questions

Investors have option to invest directly explain what is meant by indirect investment also list some reasons why an investor might prefer closed-end fund to an open-end fund?

Direct investment refers to buying shares directly without the use of Mutual funds Actually an investor may prefer an open ended fund because he has the right to take out his money any time he wants. In case of a close ended fund he would have to wait until fund maturity to encash his investment. But close ended funds usually perform better than open ended funds because of the lock in period.


Why do some shops not cluster together?

Mostly because they just prefer to exploit a new area instead of compete. This is especially true for franchised firms, where the investor would prefer low or no competition. I have noticed that where is MacDonald's there is no Burger-King for example....


Investing in a widely diversified portfolio of stocks does not eliminate the risk that the whole market rises and falls?

no. If you are not a stock riots investor you should diversify because diversification is just protection against ignorance because a real investor won’t care about fluctuations in the market because they will care about the underlying value of a security. If you aren’t a serious investor then you should diversify. if you are a serious investor then you shouldn’t diversify because you know what your doing and you prefer down times so you can buy more undervalued securities.


What birth control works better?

Well for myself I prefer the implant. I have the one that is put in my arm. The only con is the periods are real irregular.


During periods of inflation why do suppliers may temporarily withhold goods that can be stored for long periods?

When faced with inflation, suppliers prefer to hold on to goods that will maintain their value rather than sell them for cash that loses its value rapidly.


What is wrong if you're bleeding for 14 days and you have regular periods and you've been taking Loestrin?

I don't know, but I prefer you to go see the doctor.


What climate do green peas need to grow in?

Peas prefer temperate zones. They do best being planted into the cool, moist soil of spring and then as they near bloom and through to maturity they prefer warm, humid conditions. In North America they are usually planted in April and harvested in late June through July.


Temperature requirement for soyabean?

From planting until full maturity, temperatures should not drop below 32 degrees F. During the growing season, they prefer temperatures in the low to mid 80 degree F range.


In what circumstances might an investor prefer stocks that do not pay dividends?

An investor might prefer stocks that do not pay dividends when they are seeking capital appreciation rather than immediate income. Growth-oriented investors often target companies that reinvest their earnings into expansion, research, or innovation, which can lead to substantial long-term price increases. Additionally, non-dividend stocks can provide tax advantages, as capital gains may be taxed at a lower rate than dividend income. Lastly, younger investors with a longer time horizon might prioritize growth stocks to maximize their portfolio's potential.


What is the abbreviation of homework?

HW Of course you could always put periods between them and make it H.W. then again, some other people write it as hmwk, but most prefer HW or H.W.


What present tense of word to prefer?

I prefer you prefer he prefers she prefers it prefers we prefer you prefer they prefer


How many days differrence should be between the Periods and sex after marriage?

No one said you can't have sex while you are on your period, but it is messy and some people prefer no to do so. You are married have sex when you feel ready!