Investing Stocks and Bonds Essay

drop parentages in Stocks and Bonds Stocks and Bonds are different in many ways. A wrinkle is a portion or percent of the ownership of a corporation. A share testament give the owner of the roue the companys put ons or loses over time. The good affair about line of businesss is they washstand be sold at almost any time as long as there is some star willing to buy. A vex, on the other hand, is a fixed interest financial asset issued by governments, companies, banks, and other large entities. Bonds also are called funds. Bonds pay the owner a fixed amount a special(prenominal) date, or on contract dates dep residualing on the type of bond.If the bond is a discount bond, then there is one pay date at the oddment. If the bond is a voucher bond, then it pays a fixed amount over a specific time. The time could be by month, or by year. My team was appoint the task of investing 120,000 dollars over ten age. We were to invest 80% of 120,000 dollars in stocks and 20% in bonds. We invested in six different stocks and two bonds. Also, we go bad the money. Therefore, we each invested 6,000 dollars per year in three stocks and one bond. The first stock I decided to invest in was Nike Inc. Nike Inc. is a strongly denote and a well-distributed company (Nike).Nike Inc. is known well across the world (Nike). When it comes to shoes, clothes, or sports apparel, everyone has at least one item of Nike. In most cases, quite a little own multiple things of Nike equipment. Nike Inc. spends great amounts of time and money on their products (Nike). Also, Nike Inc. is passing popular among sports. That is germane(predicate) because I am an athlete, and own many Nike products. intimately every pair of shoes I own is Nike, besides change shoes. This all proceeded to tell me, as an investor, to get involved in a part of the company. I took 2,000 dollars of the 6,000 dollars and invested in Nike Inc.Every year for ten years I bought 2,000 dollars worth of shares. The n umber of shares each year ranged from 24 shares to 42 shares of Nike Inc. stock. In April of 2007, there was a stock wear out for Nike Inc. The shares scattered 21. So the number of shares I possess up to that point twofold. I owned roughly 197 shares before the 21 fall apart. After the split I accumulated about 395 shares. The entire number of shares at the end of ten years was approximately 527 shares. My shares sold for $89. 34 each. The original earn from Nike Inc. was $47,130. 76. Another stock is distort Inc. This is another company in the vestments industry however, heft up Inc. urprised me with how well they did. Buckle Inc. is a popular uniform store for materialisation adults (Buckle). They have jeans, dress shirts, shoes, and other clothing (Buckle). Their products tooshie get expensive, but they are made well (Buckle). Many young adults shop at Buckle Inc. for the variety of trendy options they offer (Buckle). This is relevant because I am a young adult, a nd have shopped at Buckle before. I also know many friends and family who has shopped in Buckle as well. If soul asks around looking for a nice pair of jeans the decide is, Have you tried Buckle? They have a nice selection. want in Nike Inc. , I took 2,000 dollars to invest in this fine company. In 2001 when I started, the shares were quite suffering in price. The first year I owned over 100 shares. Unlike Nike Inc. , there was more than one split for Buckle Inc. There were two stock splits within the ten years. iodin split came in January of 2007, and another split came in October of 2008. Both of the stock splits were 32 splits. Prior to the first split I owned around 460 shares. After the split I owned about 690 shares. ahead the second split I had approximately 786 shares. Following the second split I owned around 1,180 shares.The aggregate number of shares in the end was about 1362 shares. Each sold for $44. 21 coming to a total of $60,238. 45. The last stock I invested in was in the outrageous anele colour and gas industry. The oil and gas industry can be a jeopardizey investment therefore, I was not guaranteed to come out on top or, in another words, succeed. If success were the outcome, the profit would be pretty significant. I tried chevron lot because they seemed genuine compared to other oil and gas companies (Chevron). Chevron Corporation has been known to strive beyond expectations, and cover for the invulnerablety of the workforce and environment (Chevron).Chevron products are recognized for their quality, performance, and engineering around the world (Chevron). I decided to be on the safe side and only invest 1,000 dollars in Chevron Corporation because of the risk factor that comes into play with the oil and gas industry. Chevron Corporation very did well after all. The share prices were high to start with. Chevron Corporation had one stock split within the ten years. In phratry of 2004, the 21 split helped my number of shares go from about 48 shares to around 97 shares total. In the end I owned a total of approximately 180 shares.These shares sold for a big $105. 38 each. This nearly doubled the 10,000 dollars. The total after the ten years in Chevron Corporation was $18,982. 67. The one mutual fund I invested in was with PIMCO. This global investment authority offers many different bonds such as absolute return bonds, asset allocations, convertibles, municipal bonds, core bonds, etc. (PIMCO). The bond I chose was a core bond. This bond was the PIMCO Total Return Fund. This ill-tempered fund focuses on a solid core fixed-income (PIMCO). The fund will typically invest in a diversified portfolio of securities (PIMCO).One thing I noticed when researching PIMCO Total Return Fund was that the worst one year return for this bond was 0. 28% (PIMCO). This made PIMCO a reliable source in my eyes. I selected to invest 1,000 dollars with PIMCO because it is a popular, reliable investment company. The shares for t his fund had a low price. Each share was $10. 65 in July of 2001. This investment consisted of many more shares at a much start price. I owned roughly 90 more shares every year. The total number of shares after ten years was about 1030 shares. Each share sold for $11. 12.This gave me a total of $11,456. 71 in returns. After investing 60,000 dollars over ten years in three stocks and one bond, I accumulated a total of $137,808. 59. Buckle Inc. was my best investment earning $60,238. 45 over ten years. Surprisingly Buckle Inc. was able to triple its profit over the total ten years I invested. Nike Inc. over doubled in the ten years. Nike Inc. did quite well throughout the ten years. Chevron was the least earning stock however, this investment earned almost double the 10,000 dollars ab initio spent on the stock. The PIMCO Total Return Fund was what Dr.Duke considers a low risk/low reward investment. The PIMCO Total Return Fund was conservative. The total at the end of ten years in th e PIMCO Fund was $11,456. 71. This fund earned a small amount over 14% profit. This was factual a very respectable profit for a mutual fund. overall the total return from all the investments was a tremendous profit. Going from 60,000 dollars to 137,000 dollars was remarkable. non everyone succeeds in the market however, this is a great illustration of how well someone can do in the world of investment when it comes to stocks and bonds. Works Cited Buckle Inc. Buckle. com Mens and Womens On-Trend Fashion Clothing & Designer Jeans