We will assume that you have a total of $12,000 to invest - $3,000 and $9,000 from your favorite uncle who gave you this gift with the stipulation that it will be used to build your future through investing. You will be constructing a portfolio with $4,000 in stocks, $4,000 in bonds, and $4,000 in mutual funds. Respond to the following by providing at least one paragraph for each item and support your response.
1) Characterize the types of stock, bond, and mutual fund investments available for your investment portfolio by explaining the advantages and disadvantages of investing in each type.
2) Explore tools for evaluating stocks, bonds, and mutual funds and make a selection based on your investment philosophy and goals as follows:
Stocks: visit a stock screener web site such as Yahoo! Finance’s Stock Screener or Google Finance Stock Screener and search for at least two stocks of your choice based on the available information and invest $4,000. Be sure to indicate the company name, the price per share, and the number of shares purchased for each stock.
Bonds: visit the Financial Industry Regulatory Authority’s Market Data Bond Search and search for at least two bonds of your choice based on the available information and invest $4,000. Be sure to indicate the company, municipality, or government name, the coupon rate, and the price paid for each bond.
Mutual Funds: visit Fidelity, Vanguard, or a mutual fund company that you would like to explore and search for at least two mutual funds of your choice based on the available information and invest $4,000. Be sure to indicate the mutual fund name, the price per share, and the number of shares purchased of each mutual fund.