Asset Planning Discussion Post 7 – Coursework Example
Asset planning Affiliation Asset planning The economies of the country has changed as well as that ofinternational markets meaning that they create a change in the stock value of the market that changes from one market to another. Therefore, the client does not understand that in case the company the money is invested in goes under he is likely to lose the money he invested in bonds. This is because as a bond holder a person can lose all their money or some of it. In case the company goes under the only money that the client can get is the share capital that they invested (U.S Securities Exachange and Commission). Additionally, when it comes to the shares of the company in terms of receiving dividends the client can only benefit from them if the United States currency does not inflate.
The client is getting wrong on the issue of the running of the company in the sense that the company is not managed by the shareholders, but the board of directors (U.S Securities Exachange and Commission, n.d.). Therefore, the client needs to understand that as a stockholder and bond holder he can either lose his money entirely or partly depending on how the company works out it problems.
The kinds of questions to ask an investor who falls in such novice would be
1. Why they want to invest in that company?
2. Whether they understand the economic, social and political conditions of the company they want to invest in?
3. Whether the company has ever been involved in any stock scams that may cause the company some trouble?
4. Whether they understand the risk involved when it comes to investing money in that company?
U.S Securities Exachange and Commission. (n.d.). Investor. gov. Retrieved from Investor. gov: http://investor.gov/introduction-markets/why-invest
U.S Securities Exachange and Commission. (n.d.). Interantional Investing . Retrieved from U.S Securities Exachange and Commission web site: http://www.sec.gov/investor/pubs/ininvest.htm