Financial Planning
Capital Markets
Google
Role of a Financial Consultant
100
What is the difference between saving and investing?
Savings are funds you posses for emergencies that you do not plan to grow, where as Investing uses your funds to grow their value but at a greater risk than saving.
100
What are the benefits of long term investing?
Long term investing allows one to invest and narrow out some of the risks that tend to be incorporated in investing
100
What makes the Google stock fit the price aspect of the 5 P's
The price of Google stock has depreciated over the past year from $608.91 per share to $556.11 per share as of the 7/17.Today trades at $665.93, including over the past five years has grown 137.7%
100
What is the "know your client rule"?
Know your client objectives, risk tolerance,financial status, and time horizon
200
What are the similarities and differences of stocks and bonds?
The similarities stocks and bonds are they are both forms of investing, however, stocks are ownership of a company while a bond is a loan given to a company.
200
How can one reduce investment risk?
By investing in equities over long periods of time as well as investing in numerous areas and different stocks to help diversify their portfolio.
200
What makes the Google stock fit the people aspect of the 5 P's
Google posses two of the most innovative people this generation has seen in Larry Page and Sergey Brin.
200
What are client objectives?
Client objectives are the goal and reasons why a client is investing their income.
300
What is the importance of investing and planning early?
Investing and planning gives the opportunity to maximize the 8th wonder of the world "Compound Interest". This is essential to getting ahead of the curve when it comes to investing
300
What is the economic cycle?
the economic cycle is a shaped in a boom and bust format
300
What makes the Google stock fit the profit aspect of the 5 P's
In last year revenue grew 17% and the profit margin increased by 20.8%, they earned 66 Billion dollars in profit.
300
What is risk tolerance
Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand.
400
What is one aspect building a successful financial plan?
A key point is for one to plan with the beginning a plan with the end in mind.
400
What are the benefits of diversification
The benefits of diversification is you don't put all your eggs in one basket, so if you fall and crush your basket you don't lose all your hard work.
400
What makes the Google stock fit the plan aspect of the 5 P's
Google has traditionally been an innovative company, they are fostering this momentum by pouring in 9.8 Billion dollars into research and development as well as looking into buying out Spotify, Netflix, and Twitter according to the business Insider.
400
What is Financial status
Financial status is the wealth one posses, this determines how much principle an individual begins with.
500
What is the major rule of investing
The rule of 72, the equation for such is 72/ rate of return = Number of years to double your investment.
500
Who is the greatest enemy of the capital market
Inflation goes hand and hand with the capital market and affects of the capital market is operates
500
What makes the Google stock fit the product aspect of the 5 P's
Google is diversified with products such as Skybox technology, Major technology, Youtube, and many more.
500
What is time horizon?
Time Horizon is the amount of time one has to invest, youth to older individuals.
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