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Finance 2

In: Business and Management

Submitted By kevinmerov90
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UNIVERSIDAD CATOLICA DE SANTIAGO
DE GUAYAQUIL

Finances 2 tutorial
PORTFOLIO
INTERNACIONAL BUSINESS MANAGEMENT
Student:
KEVIN MERO
23/08/2012
Financial products refer to those instruments that help you save, invest, get insurance or get a mortgage. These are issued by various banks, financial institutions, stock brokerages, insurance providers, credit card agencies and government sponsored entities. Financial products are categorized in terms of their type or underlying asset class, volatility, risk and return.
First, it is necessary to analyze some important aspects like: the financial market that is any type of financial transaction that you can think of that helps businesses grow and investors make money. To know how and where put your money it’s difficult. Investment involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns. Various investment options are available, offering differing risk-reward trade offs. An understanding of the core concepts and a thorough analysis of the options can help an investor create a portfolio that maximizes returns while minimizing risk exposure.
There are many types of investment, one of them is: Cash investments that include savings bank accounts, certificates of deposit (CDs) and treasury bills. These investments pay a low rate of interest and are risky options in periods of inflation. Debt securities that provide returns in the form of fixed periodic payments and possible capital appreciation at maturity. It is a safer and more 'risk-free' investment tool than equities. However, the returns are also generally lower than other securities. Stocks: Buying stocks (also called equities) makes you a part-owner of the business and entitles you to a share of the profits generated by the company. Stocks are more volatile and riskier than bonds.
When you invest

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