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1) Investments can be long-term or short-term. If you are investing for the long

ID: 2712251 • Letter: 1

Question

1) Investments can be long-term or short-term. If you are investing for the long term, how much do you think general news stories, news about the economy, and company-specific news stories should affect your investment choices? Explain your answer.

2) Investors are often grouped into two categories, those investors who invest based on specific company information, known as “fundamental investors,” and those who pay more attention to market movements and factors based on general market psychology, known as “technical investors.” Which method do you feel is more likely to serve your needs best? Why?

Explanation / Answer

1)

The long term investments held for more than one year.

There are more factors to be considered for long term investment.

They include:

These are some of the factors which are favourable to invest the stock.

2)

I like the technical investors; because they scar at market movements by analysing the company current and future projects.