Readers ask: When investors purchase a commodity, they believe?

Which investors purchase a commodity they believe?

When investors purchase a commodity, they believe the commodity’s price will go up after purchase. the bank will pay interest to the investors. the investors‘ employer will match the cost.

What might convince an investor to buy stock?

What might convince an investor to buy stock or mutual funds? increase both risks and returns. reduce both risks and returns. increase liquidity of investments.

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Why is it risky to invest in a commodity a commodity has little or no value as a long term investment commodity stocks Cannot be traded after you purchase them the commodity’s price might drop significantly very quickly the investment will tie up?

Commodity stocks cannot be traded after you purchase them. The commodity’s price might drop significantly very quickly. The investment will tie up your money for more than one year.

What does the information demonstrate about Gale’s investments if she had purchased only the stock and had not diversified her investments she would have lost money if she had diversified her investments further her profits would have?

Investments during One Year What does the information demonstrate about Gale’s investments? If she had purchased only the stock and had not diversified her investments, she would have lost money. If she had diversified her investments further, her profits would have been considerably larger.

What investment has the least liquidity?

The least liquid assets are thinly traded and have high transaction costs: Think real estate, art, and private equity.

Which investment is best for someone who is likely to need cash?

So, if a person is likely to need cash soon, he or she should invest money in savings account. So, the correct option is D. savings account.

Are debt certificates that are purchased by an investor?

BONDS are the death certificates that are purchased by an investor.

How easily an investment can be exchanged for cash is known as?

How easily an investment can be exchanged for cash is known as diversification.

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Which statement best describes how an investor makes money off debt?

Which statement best describes how an investor makes money off debt? An investor makes money by issuing bonds.

Why commodities are a bad investment?

Investing in commodities can be dangerous because when dealing with raw materials, supply and demand is unpredictable. Though everyone knows the stock market is a risky game to play, with constant ebbs and flows, commodities can be an even bigger risk.

Are commodities riskier than stocks?

Commodities are the most volatile asset class. It is not unusual for the price of a raw material to halve, double, triple or more over a very short time. Stocks, bonds, and currencies tend to have lower variance and more liquidity than commodities.

Which is better commodity or equity?

Equity Markets are less volatile as trades can be undertaken even in a single share, while commodity markets are highly volatile as trades are conducted in huge lot sizes. Equity markets are less risky as low volatility is there, the Commodity market is highly volatile as a result of the same these are highly risky.

Which is an example of a high risk investment?

But there is uncertainty as to whether the management will perform all the necessary duties to develop the company and earn sufficient returns. Other examples include cryptocurrencies, foreign exchange, ETFs, Venture Capital, Angel investing, Spread betting, etc.

What are some characteristics of short term investments?

Some of the desired traits in shortterm investments are safety, liquidity, and returns, and money market accounts have these characteristics. Money market accounts are ideal places for corporations and investors to park their cash for a short time while they wait for an opportunity to deploy it.

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Which best describes the role that government and business play in investments?

Which best describes the role that government and business play in investments? They both use taxes to support a country’s growth. They both invest money to earn a profit.

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