Investing Unit 4: Summary

Equity investing means becoming a partial owner of a company or piece of property through the purchase of investments such as stock, equity mutual funds, and real estate. Capital appreciation over time is the primary objective, although some equity investments, such as REITs and equity-income mutual funds, also provide dependable dividend income. This unit has reviewed general characteristics of equity investments and “nitty gritty” details such as how to purchase them. Diversification and asset allocation, as they relate to equity investing, were also discussed. The unit concluded with a discussion of specific equity investments. Now you need to consider appropriate equity investments that will mesh with your personal financial goals.

Use the action steps and the Equity Investment Comparison Worksheet below to make investment decisions.

Equity Investment Comparison Worksheet

Characteristic Equity Investment #1 Equity Investment #2 Equity Investment #3
Rate of Return (recent or projected)
Maturity Date, if any
Minimum Initial Investment
Minimum Subsequent Investment
Tax Advantages, if any
Frequency of Dividend/Capital Gain Payouts
Other Features:

Work on the Action Steps now to get started.