Question

When buying a stock in a publicly traded company, you should be able to answer the...

When buying a stock in a publicly traded company, you should be able to answer the following questions first:

What are you trying to accomplish?

What is your time frame?

How much risk do you wish to take?

Based on your responses to these questions, what stock would you purchase and why? There are no right or wrong answers here, just looking for your insight.

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Answer #1

Solution:

When investing in a pulically trading company,answer of the stated question are as follows

What are you trying to accomplish:-regular income and capital appreciation

What is your time frame:-20 to 25 years

How much risk do you wish to take:-Moderate risk

I would like to invest in blue chip fund beacuse blue chip funds invest in stocks of those companies that have a credible track record with sound financials along with regular dividends payments and profitability over the years.

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