Why do corporations issue stock why do investors buy that

Directions: Using Microsoft® Word to save and submit your work, please provide detailed and elaborate responses to the following questions. Your responses should include examples from the reading assignments.

1. After graduating from a community college, you obtain a job as a medical records technician. Your monthly take-home salary is $2,000. Your monthly expenses are $1,600. Based on this information, what steps should you take to establish a long-term investment program?

2. Bob and Mary Martin are both 35 years old. Although they graduated from college almost 15 years ago, they have never developed a diversified investment program. What extra money they had was invested in high-tech stocks that did quite well until the last five years. Then, with the economic downturn, they encountered major losses. How could asset allocation have reduced the dollar amounts of the Martins' losses?

3. To manage a financial crisis, many experts recommend that you take action to make sure your financial affairs are in order. Name and describe five steps you can take to ensure that your financial affairs are in order.

4. Why do corporations issue stock? Why do investors buy that stock?

5. What is the primary difference between common stock and preferred stock?

6. Explain what dollar cost averaging is and why an investor would use the technique.

7. Describe the sources of investment information investors can use to evaluate a potential investment.

8. Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

9. Describe the difference between full-service, discount, and on-line brokerage firms.

10. Matthew Boyd has saved $10,000 and wants to invest in common stock. Identify three investment methods he could use and briefly explain how each of those methods works.

Write a 1-page, double-spaced paper in 12 pt. font answering the following question. Please use APA format.

1. Research three companies that you may want to eventually invest in. Then, list these companies and discuss why you chose these companies. In your discussion, include what sources that you can use to determine if these companies are worthy of your investment.

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Finance Basics: Why do corporations issue stock why do investors buy that
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