Comparison should include the advantages and disadvantages of options such as
- savings accounts (regular, money market)
- certificates of deposit (CD)
- individual retirement accounts (IRA)
- stocks, bonds, mutual funds, and other investment options.
Process/Skill Questions:
- What is the purpose of a stock portfolio? How should a stock portfolio be developed?
- Which is safer—investing in mutual funds or investing in individual stocks/bonds? Why?
- How do the following currently rank in terms of risk and rate of return: savings account, CD, savings bond, money market fund, stock, bond, mutual fund?
- When analyzing companies for potential investment in their stock, what types of information should be considered? Why?