Topic 9: Financial Markets

I would be most likely to invest in stocks (50% of my investing money) and pension accounts (50% of my investing money). Stock is a share of ownership in a corporation. Stockholder can receive dividend, the part of a corporation’s profit that is paid out to stockholders. Investing on stocks is risky. Yet it has high returns. It could either result in losing the money or earning the money. Despite the high risks and high returns, investing your money on the stock might be the fastest and simplest way to earn potentially large money. Earning money from stock investment is greatly depending on the correct evaluation of the company’s performance, the condition and situation in the market, and a little bit of luck. Driven by greedy, people always fail to earn money due to the fact that they often over-estimate the growth of the stock’s value, resulting in not selling the stock while its value falls in the next day. As for pension accounts, it is fairly easy to earn the money. You just need to put the money in the account for a certain time; the interest will be added to your original money. However, the interest rates are often small; the returns are low. Nevertheless, pension accounts might be the safest way to ensure you will earn a profit from this investment.