Question

ZipCar, Facebook, and Dunkin Doughnuts all recently went public. Before they did, they were still valuable. Discuss in what stages of the Investor Life Cycle (accumulation phase, consolidation phase, or spending phase) each of these stocks would be most appropriate and why.

Answer 1

Dunkin Doughnuts and Zip Car: Looking at their pace of progress and their stock value they are still in their accumulation phase. Also because of the fact that they are in the early stages of building up the cash value of the annuity. As well as because of the fact that the emphasis is placed on growing wealth.

Facebook: Because of progressive stock value or you can say high stock value and revenues, it is in consolidation phase. The claim is backed as there is a balance between growth and income.