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Equity

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1 page
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2
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Subject:
BUSINESS, MKT, ECON
Language:
English (U.S.)
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INSTRUCTIONS:

Equity

SOLUTION:

Equity

Following the financial adviser’s input, I will grow my money by buying growth stocks from well-performing and profitable companies. According to Ross et al. (2019), investors opt for growth stocks since entities provide them with better-than-average gains; hence they let stockholders access more substantial earnings. Although there are no guarantees, Kratter (2019) postulated that growth stocks continue delivering high revenue levels, positively impacting future dividends. Higher pricing than broader markets and significant future dividend records are principal reasons why I may select growth stocks as an investment destination as I trust that buying earlier in growth businesses is the pinnacle of raising capital.  

Apart from investing in growth stocks, I will also venture into dividends. For income-seeking investors, yield stocks provide a feasible investment option since they perform well in bull markets, protecting them in bear markets (Ross et al., 2019). Kratter (2019) explained that dividends are safer; hence investors should opt to focus on businesses entering the dividend space as they are substantially stable, making them a vital portfolio addition. Dividends offset costs between an investors’ broker and taxes, making such investments attractive. I believe that yield stocks will improve my total return on my financial outlay. Dividends will ensure my money...

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