The fact that people expect huge returns from their investments is not a brainer. The major reason people invest is to create wealth by having their money working for them. A client with no solid financial background requires an in-depth analysis of the financial market situation. The resulting financial information availed to him or her should be easy to understand and not only useful, but is ready to consume. The financial information should avail such information as why the client should invest in a particular publicly traded company. A clear presentation of the risks involved, should explain a possible return on investment and general nature of business within the company. (Gupta & Dhingra, 2012).
A perfect company for investment …show more content…
A stock that can grow in value while creating the maximum returns on the invested funds is given investment preference. Apple stocks was picked in this research as a suitable investment for client(s) after considering the points from the company’s operations and financial health. Further points for consideration were obtained after analysis of information from financial resource libraries and websites such as Forbes, Motley Fool and CNN Money.
Forbes offer relevant information on personal finance among them is the rules of picking stocks for the average investor without any prior financial knowledge. Six rules are offered on the process of picking stocks for new investors. The rule number one requires that the stock that is selected by the investor to be of a company with an easy to understand the business model. The investor should find it easy to understand the knowledge involved in the company of interest and the general industry in which the firm of interest is operating. Apple Inc. is an example of a publicly traded company with an easy to understand business model in which budding investors can easily venture. The second rule for picking the right stocks involve investing in companies with formidable established brands. The best brands that are emerging may also be considered. Apple has strong brands in the market. Apple iPhones and iPad series are …show more content…
Apple Inc. has had a history of good performance since the IPO. The company has experienced a surge in growth with the firm’s stocks increasing from a low price of $ 6.56 to $ 403 in a period of about years. The company has demonstrated its ability to rise from biggest financial slumps. A case in point is during the period of the 1990s in which the company’s stock prices plunged to its lowest stock prices ever. The company, however, rebound to great stock prices in 1998 and 1999 posting a 212% and 151% increase in those years respectively. The past performance indicates whether the company or brand of interest has the shareholder’s long term value at heart or is not in creating wealth for the shareholders. The ability of a company to rise from low moments is an ability of a strong performer, and if the firm has managed to maintain good performance, then that company suits to be invested in (Benzinga Editorial,
A perfect company for investment …show more content…
A stock that can grow in value while creating the maximum returns on the invested funds is given investment preference. Apple stocks was picked in this research as a suitable investment for client(s) after considering the points from the company’s operations and financial health. Further points for consideration were obtained after analysis of information from financial resource libraries and websites such as Forbes, Motley Fool and CNN Money.
Forbes offer relevant information on personal finance among them is the rules of picking stocks for the average investor without any prior financial knowledge. Six rules are offered on the process of picking stocks for new investors. The rule number one requires that the stock that is selected by the investor to be of a company with an easy to understand the business model. The investor should find it easy to understand the knowledge involved in the company of interest and the general industry in which the firm of interest is operating. Apple Inc. is an example of a publicly traded company with an easy to understand business model in which budding investors can easily venture. The second rule for picking the right stocks involve investing in companies with formidable established brands. The best brands that are emerging may also be considered. Apple has strong brands in the market. Apple iPhones and iPad series are …show more content…
Apple Inc. has had a history of good performance since the IPO. The company has experienced a surge in growth with the firm’s stocks increasing from a low price of $ 6.56 to $ 403 in a period of about years. The company has demonstrated its ability to rise from biggest financial slumps. A case in point is during the period of the 1990s in which the company’s stock prices plunged to its lowest stock prices ever. The company, however, rebound to great stock prices in 1998 and 1999 posting a 212% and 151% increase in those years respectively. The past performance indicates whether the company or brand of interest has the shareholder’s long term value at heart or is not in creating wealth for the shareholders. The ability of a company to rise from low moments is an ability of a strong performer, and if the firm has managed to maintain good performance, then that company suits to be invested in (Benzinga Editorial,