Investors

Term Paper Title	Investors
# of Words	501
# of Pages (250 words per page double spaced)	2

Investors

There are many types of investments that provide greater returns than the traditional bank savings accounts and Certificates of Deposit.  Being successful in choosing the right investment can be difficult for the novice.  One key to successful investing is to understand which type of investor you are.  Knowing whether you are an aggressive, moderate or conservative investor will keep you focused on the right investment decisions.

Aggressive investors are willing to accept the highest risk of loss and often experience the highest return on their investment.  Aggressive investors typically allocate most, if not all, of their investment portfolio to stocks.  These stocks are usually small or medium sized companies that can be very volatile in price and are often in the hottest investment sector.  Recent examples include America On Line and Computer Horizon, which are in the very volatile Internet technology sector.  In just the last few months, America On Line gained 50 percent in value, while Computer Horizon lost 30 percent in value.  Aggressive investors also may invest in high yield corporate bonds, better known as junk bonds.  These bonds pay very high interest, but risk default by the issuing companies because they are considered to be credit risks.  Over time, however, the disciplined, aggressive investor will make the most money.

Moderate investors wish to participate in the stock market but hedge their portfolios by investing in safer stocks and bonds.  Moderate investors typically allocate half their investments to stocks and half to bonds.  The sto...

This is ONLY a preview of the article. If you would like to view the entire document, you must subscribe to Digital Term Papers. Please register below now!

Digital Term Papers has over 63,000 essays, term papers, and book notes online. Many paper sites will charge you hundreds of dollars for a single paper. Digital Term Papers only charges $14.95 for a one month membership with instant account activation!

Don't waste anymore time! Join NOW!!!

Pay by: