investment(投资).doc

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1、InvestmentA: Hey, do you know what is investment?S: Of course, investment is that it is the process of putting money into instruments where it is expected to increase in value.A: Okay. And I have a quesetion for you, why should people invest? You know if I just save money in the bank I still can pay

2、 for a down payment on a car or a trip to the island.S: Of course you can. But think about the inflation. Inflation is the rate at which prices for everthing, from a loaf of bread to a new car, increase over time. To guard against those price increase, people often turn to investing. This provides t

3、hem a way to make more money than they lose through inflation.A: It sounds like investment is a process of outpacing inflation.S: Thats right. Do you know what is the first factor we should think about when investing?A: Of course. Its the risk. There is a possibility that when you do the investment

4、you may think it could squander all your money. Well, yes and no. Yes, investing dose involve risk. But unlike some powerless entity, helpless to influence your surroundings, when you begin investing, you can control and deal with risk responsibly if you understand what it means and how it works.S:

5、Yes you are right. There are other very basics, Such as return and liquidity. In order to beat inflation and determine whether an investment is making or losing money, its important to understand how investment performance is measured. One term important to understand is called a return. A return is

6、 simpy a measurement, usually listed as a percentage figure, that tells whether the value of an investment has increased or decrease over a specific period of time. By the way do you know what liquidity is?A: Yes, Liquidity is the speed and ease with which an investment can be converted to cash, pre

7、sumably in the case of an emergency of merely as a convenience. Its important to take liquidity into account when determining investment options.S: Quite right. And there are many investment options, such as stock bonds and mutual funds. By the way, if you do the investment which one do you prefer?A

8、: I will chose bonds. Buying bonds just like giving a loan to a friend. At some point down the road, he will return not only the amout you lent, but interest payments as well. With bonds, its not friend who take the money, but companies or governments.S: Thats cool. I think stock and mutual founds a

9、re also great choices. Companies issue stocks as a way of raising money to fund their operations or expansion. Individual buy these shares in the hope of making money. Shareholders can profit from investing in two ways. The first is when the company that issues the stock pays shareholders a portion

10、of its profits, called dividends. The second way is when the share price of the stock increases in the market, or stock exchange,where it is traded and is the sold for higher price.A:Yes. And Mutual funds are investment companies that pool the money of many individuals and invest it in stocks, bonds, and other securites under the guidance of a professional manager.word文档 可自由复制编辑