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    A1 Finmar

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    Roren Kaye A. Endique
    The financial market plays an important role in a country's economy. It allows individuals to invest in equities and receive higher returns than savings accounts over time. It also provides insured investments that help companies provide services. Lenders use financial markets to borrow money and offer loans to individuals and businesses. When investing for the long term, it is important to get finances in order, understand time horizons, choose a strategy and stick to it, understand investment risks and costs, and mind fees to maximize returns.

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    A1 Finmar

    Uploaded by

    Roren Kaye A. Endique
    10 views1 page
    The financial market plays an important role in a country's economy. It allows individuals to invest in equities and receive higher returns than savings accounts over time. It also provides insured investments that help companies provide services. Lenders use financial markets to borrow money and offer loans to individuals and businesses. When investing for the long term, it is important to get finances in order, understand time horizons, choose a strategy and stick to it, understand investment risks and costs, and mind fees to maximize returns.

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    A1 FINMAR

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    The financial market plays an important role in a country's economy. It allows individuals to invest in equities and receive higher returns than savings accounts over time. It also provides insured investments that help companies provide services. Lenders use financial markets to borrow money and offer loans to individuals and businesses. When investing for the long term, it is important to get finances in order, understand time horizons, choose a strategy and stick to it, understand investment risks and costs, and mind fees to maximize returns.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views1 page

    A1 Finmar

    Uploaded by

    Roren Kaye A. Endique
    The financial market plays an important role in a country's economy. It allows individuals to invest in equities and receive higher returns than savings accounts over time. It also provides insured investments that help companies provide services. Lenders use financial markets to borrow money and offer loans to individuals and businesses. When investing for the long term, it is important to get finances in order, understand time horizons, choose a strategy and stick to it, understand investment risks and costs, and mind fees to maximize returns.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Endique, Roren Kaye A.

    2BSA-1
    Assignment: Financial market in economy
    1. The importance of the financial market in a country's economy.
    The capability to invest in shares, generally referred to as equities, in the financial
    markets might help you save money for the long term. This often provides a larger
    return over time than opening a savings account at your bank. But nonetheless
    purchasing stock can be dangerous. It's important to understand that the value of
    any investment might increase as well as decrease, and that financial record does
    not guarantee current growth.
    The financial markets also provide insured investments. To guarantee that you will
    receive a payout in the case of a collision, such as missing or damaging your
    smartphone, insurance firms should utilize financial markets. Lenders, including
    banks, can borrow money owing to financial markets. They offer loans to
    individuals who are interested in borrowing - whether that's studying at the
    university with a student loan, perhaps, or purchasing a property with a mortgage.
    2. Give at least 5 investment tips for financial securities.
    1. Get Your Finances in Order
    You must first determine how much money you have to invest before you can make
    long-term investments. That involves getting your finances in order. Begin by
    preparing an inventory of your assets and liabilities, creating a practical debt
    management strategy, and determining how much money you require to completely
    finance an emergency fund. By completing these monetary responsibilities first, you
    can put money into long-term investments and avoid having to withdraw it for a while.
    2. Know Your Time Horizon
    Understanding your time horizon, or the number of years prior to requiring the money,
    is the key to any long-term investing, regardless of the goal. Although there isn't a clear
    definition, long-term investing is typically defined as five years or more. You can choose
    the right investments and determine how much risk you should take on by knowing
    when you will need the money you are investing.
    3. Pick a Strategy and Stick with It
    Choose an investment strategy and settle with it once you've determined your
    investing objectives and time horizon. It may even be advantageous to breakdown your
    total time horizon into narrower segments to assist your decision of asset allocation.
    4. Understand Investing Risks
    Be sure you are mindful of the risks related to investing in different assets before you
    buy them to prevent impulsive responses to market declines. Yet, determining risk is
    not always as easy as looking at credit ratings. Investors should also take into account
    their own risk tolerance, or how much risk they can take.
    5. Mind the Costs of Investing
    Costs related to investing can decrease profits and increase losses. The expense ratio of
    the funds you choose to invest in, and any management fees advisors may charge are
    usually the two key charges to take into account while choosing an investment. When
    purchasing individual stocks, ETFs, or mutual funds in the past, you also had to pay
    trading costs; however, this is much less prevalent today.

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