Economics oral assignmnent that deals with the sharemarket in a roleplaying situation

Mr Smith walks in and sits down

Schipke: Good afternoon, Mr Smith.

Smith: Hey Tom. So, any progress on the advice for my 100 000?

Schipke: Yes. As a matter of fact, Ive outlined wholly your investments and what I think you should do with them

Smith: Well lets hear it!

Schipke: ok. Firstly, I think you should split your money into four different industries. diversification is very important when investing your money. If you dont diversify, something could happen like the exertion youre invested in goes broke, and youll be in trouble. For example, if youve invested in an oil bon ton and the oil runs out. Alternatively, one industry might boom, and you could miss out, when you right integraly want a piece of it, for example if an oil party suddenly finds a new stock of oil. So I wouldnt recommend investing all your money into one company, no matter how well they seem to be going. Ive also indomitable that youd do well to stay clear of banking your money, because I cogitate you can make much more money at a formerable skilfulty level with these shares. The only reason to put your money into a fixed term bill would be to make sure youre getting a safe investment, as the bank take ons a certain percentage on top of your investment.



But I can almost guarantee more than 5% profit per annum with all these investments, as Ill explicate in a minute.

Smith: Ok, sounds sensible...

Schipke: Good? Ok. So to cut not bad(p) to the chase, I think you should invest about $25 000 into the state bank shares.

Smith: Commonwealth? Ok, why would they be a safe investment?

Well as you probably know due to the media insurance coverage of late, theyre doing very well. And unlike most...

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