ALLIED FIN202 MODULE 6 HOMEWORK ASSIGNMENT

Welcome to the Module 6 Homework Assignment for FIN 202: Personal Finance.This section prepares you to complete this assignment successfully. Please follow these instructions to complete and submit this assignment.You will create a document in either a .doc or .rtf format to record and save your work. If you have never created documents in an .rtf format, please visit the Academic Resource Center and click on Tutorials. You will then see a list of tutorials on the following page. Click on RTF Tutorial.Read the instructions carefully and review your work before you submit your assignment.Include a title page with this assignment. Your title page should follow standard APA formatting. Please view the .allied.edu/Pages/ViewPage.aspx?GroupID=189″>Title Page Example.When you are ready to submit the assignment, click the Start button at the bottom of the page to access the submission page and follow the instructions.Running head: [INSERT
TITLE HERE]

[INSERT
TITLE HERE]
Student
Name
Allied
American University

Author
Note
This
paper was prepared for [INSERT COURSE NAME], [INSERT COURSE ASSIGNMENT] taught
by [INSERT INSTRUCTOR’S NAME].

PART I
Directions:
Using Microsoft® Word to save and submit your work, please provide
detailed and elaborate responses to the following questions. Your responses should include examples from
the reading assignments.

1.
After graduating from a community
college, you obtain a job as a medical records technician. Your monthly
take-home salary is $2,000. Your monthly
expenses are $1,600. Based on this
information, what steps should you take to establish a long-term investment
program?
2.
Bob and Mary Martin are both 35 years
old. Although they graduated from
college almost 15 years ago, they have never developed a diversified investment
program. What extra money they had was
invested in high-tech stocks that did quite well until the last five
years. Then, with the economic downturn,
they encountered major losses. How could
asset allocation have reduced the dollar amounts of the Martins’ losses?
3.
To manage a financial crisis, many
experts recommend that you take action to make sure your financial affairs are
in order. Name and describe five steps
you can take to ensure that your financial affairs are in order.
4.
Why do corporations issue stock? Why do investors buy that stock?
5.
What is the primary difference between
common stock and preferred stock?
6.
Explain what dollar cost averaging is
and why an investor would use the technique.
7.
Describe the sources of investment
information investors can use to evaluate a potential investment.
8.
Choose four of the investment
alternatives presented in Chapter 13 and describe how the factors of safety,
risk, income, growth, and liquidity affect that investment alternative.
9.
Describe the difference between
full-service, discount, and on-line brokerage firms.
10. Matthew
Boyd has saved $10,000 and wants to invest in common stock. Identify three investment methods he could
use and briefly explain how each of those methods works.

PART II

Write a 1-page,
double-spaced paper in 12 pt. font answering the following question. Please use APA format.

1. Research three companies that you
may want to eventually invest in. Then,
list these companies and discuss why you chose these companies. In your discussion, include what sources that
you can use to determine if these companies are worthy of your investment.
Answer: Answers will vary depending on the companies.