Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 6, Problem 18AA
To determine

To analyze: the ways in which a person can diversify investment of retirement.

Expert Solution & Answer
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Explanation of Solution

An investment is an asset or commodity acquired with the intention of producing revenue or appreciation. Like, an investor will now buy a monetary asset with the expectation that the asset will give revenue in the future or be sold for a profit at a higher price later on.

The types of retirement investment that one can use are as follows:

    Type of InvestmentDescription
    BondsA loan to a corporation or government that pays back a fixed rate of return is a bond.
    StocksA stock is a general word used to illustrate any company's ownership certificates.
    ShareA share is an indivisible capital entity, reflecting the association between the corporation and the shareholder in terms of possession.
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