CNSR SCI 275 Study Guide - Common Stock, Convertible Security, Financial Statement

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Investing-the process of placing money in some medium such as stocks or bonds in the expectation of receiving some future benefit. Speculating-a form of investing in which future value and expected returns are highly uncertain. Build up a pool of investable capital. Ample insurance and liquidity for emergencies is necessary. How do i get started: need money, learn about stocks and bonds, set up a portfolio on paper and make paper trades, keep track of stocks and bonds, a way to invest (broker) The role of investing in personal financial goals: coming up with the capital. Deciding where the money will come from. You can make a lump sum investment right up front and let that amount grow over time. You can set up a systematic plan and put away a certain amount of investment capital. To find annual payments necessary to fund a target amount: