Individual 3 international markets - Essay Example

Fixed income is a form of investment or budget type whereby the real returns rate or the periodic income is probably judge able and at predictable levels. This kind of investment therefore provides returns at fixed period of time and the final return of principal upon maturity. The annual or the monthly returns are of great importance to the association and the money again can be used in the other investment sectors to provide revenue for the association (Allen 2000). Stocks are types of securities that represent ownership in a company or in any corporation.

They also show claim on the side o the corporation’s assets and earnings. Stocks are of two types, the common stock and the preferred stock. The common stock always allows the owner to take part in any voting exercise that is conducted at the shareholders meeting. They also entitle the owners to receive dividends. The common stock can also be termed as the ordinary shares (Allen 2000). During the liquidation of the company or any corporation, the owners are considered last after the owners of the preferred stocks.

Preferred stock or the preference shares are those that whose owners do not have voting rights and can therefore not take part in any voting exercise that is held in the shareholders meeting. During the liquidation of a company the owners of the preferred stock always have prior claim to dividends as opposed to the owners of the common stock or when a company goes bankrupt. The cash was also sub divided into bonds, this is a debt instrument that requires the one who borrows, the issurer to repay the amount borrowed together with the interest over the period that was agreed upon with the lender (Allen 2000).

In the portfolio breakdown, investment in cash took the lion share in terms of breakdown of the portfolio. Investments in cash to the teachers association are can be of greater impacts considering the