Page 13 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes Insurance Policies
 Endowment Assurance
 Money Back Plan
 Whole Life Assurance

 Unit Linked Plan
 Term Assurance
 Immediate Annuity

 Deferred Annuity
Self Assessment

Fill in the blanks:
8. Investment features should be .................................... with the investors’ general objectives.
9. The .................................... sought in investment is not absolute or complete; it rather implies
protection against loss under reasonably likely conditions or variations.
10. To plan an investment programme without regard to one’s .................................... status
may be costly to the investor.



Caselet Life Cycle – Saving and Investing

s people move through the stages of the life cycle, their financial goals and
investment strategies will change. Savings and investments that are appropriate
Afor a young couple with small children may be inappropriate for a single person
approaching retirement. The following case study illustrates possible savings and
investment choices for people at various life stages. Ultimately, each person must make
decisions and take action in light of unique household situations and current economic
conditions. You may use this case study to generates discussion. Possible suggestions for
each life cycle stage are given, but participants may generate other excellent ideas.
For Example:
Nathan is 26 years old and is working at his first job out of college. His major expenses are
rent for an apartment he shares with his roommate Mike and student loans. He drives an
older car that is paid off. He has little money saved for emergencies and would like to
travel some day. He became eligible to participate in his company’s 401(k) retirement
plan January 1, 2003.
Life Stage: Young single adult

Goals: Emergency fund, car, travel
Suggestion:
Nathan could deposit money each payday into an interest bearing savings account at the
bank or credit union. To remove the temptation to spend it before he gets to the bank, he
should consider automatic payroll deduction. Nathan should save money for relatively

Contd...

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