a) It is often understood that investing in stocks appearing on the OTC – Pink sheets is very risky. Briefly explain the reasons why. b) Your mother has a portfolio of stocks and she feels worried that if stock prices fall, the portfolio will lose value. You have read about Stock Index Futures in your course and are thinking of helping your mother with her predicament. Briefly advise your mother about what stock index futures are, how they can be helpful and whether she should buy or sell such futures.
a) It is often understood that investing in stocks appearing on the OTC – Pink sheets is very risky. Briefly explain the reasons why. b) Your mother has a portfolio of stocks and she feels worried that if stock prices fall, the portfolio will lose value. You have read about Stock Index Futures in your course and are thinking of helping your mother with her predicament. Briefly advise your mother about what stock index futures are, how they can be helpful and whether she should buy or sell such futures.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a) It is often understood that investing in stocks appearing on the OTC – Pink sheets is very risky. Briefly explain the reasons why.
b) Your mother has a portfolio of stocks and she feels worried that if stock prices fall, the portfolio will lose value. You have read about Stock Index Futures in your course and are thinking of helping your mother with her predicament. Briefly advise your mother about what stock index futures are, how they can be helpful and whether she should buy or sell such futures.
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