Chapter 10 Money and Banking.
QUESTIONS FOR DISCUSSION
1. What two factors are important to making the principle of "compounding" work?
2. What evidence indicates that corporate profits will rise?
3. Making Comparisons If the average historical return on a stock market investment is 11%, why doesn't everyone put their money into stocks rather than into a savings account?
4. Analyzing Information Agree or disagree with the statement: Stocks are the best long-term investment value. Why?
Chapter 11 Financial Markets
QUESTIONS FOR DISCUSSION
1. Why is the first rule of investing to only invest money that won't be needed for at least five years?
2. Why doesn't the theory of averages work for investing in the Dow Jones Industrial Average or the Standard & Poor's 500-stock Index?
3. Making Comparisons What is the difference between a managed mutual fund and an index mutual fund?
4. Drawing Conslusions Has this article persuaded you to invest your money in individual stocks or mutual funds? Why?