discussion and responses for finance week 1 and 2

Week 1

Discuss reasons why U.S. investors should consider international investing. Do you think the exchange rate value of the dollar will have a significant effect on the decision to invest internationally?
Discuss different types of investment vehicles available to investors (direct and indirect)?

Week 2 initial discussion

In this week’s online discussion, you will address each of the following three items;

1) Discuss various types of investment companies, including how they operate.

2) Discuss the importance of the financial markets to the U.S. economy. Can primary markets exist without secondary markets?

3) Given the lower brokerage costs charged by discount brokers and deep-discount brokers, why might an investor choose to use a full-service broker?

Solution Preview

Student Responses (Week 1)
Student 1: Nadine
Part I: I agree with the idea of investors investing internationally as it leads to a very diverse portfolio that increases their market share. Considering the interest rate is high in developing and underdeveloped countries, investors should turn their interest to these countries to increase their interest share. Foreign direct investment and money outflow lead to a high dollar demand in America this restrains of this demand would lead to an increased interest rate to relive market liquidity.

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