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That is a very complex question as there are many different ways to value stocks. Basically a diversified portfolio of equity in around 20-30 companies will make a return close to market return so long as all the companies are in different industry sectors.

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Q: What shares are suggestible for investment?
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What kind of investment is 100 shares of walmart?

single shares


Is buying and selling shares an investment?

lien marking for buying investment


What are the differences between Vanguard Admiral Shares and Investor Shares, and which option would be more suitable for my investment goals?

Vanguard Admiral Shares typically have lower expense ratios and higher minimum investment requirements compared to Investor Shares. Admiral Shares are more suitable for investors with larger amounts to invest, while Investor Shares are better for those with smaller amounts. Choose Admiral Shares if you have a significant investment amount and want lower costs, and Investor Shares if you have a smaller investment amount.


What are the advantages and disadvantages of direct investment in ordinary shares?

Direct investment in ordinary share is less complicated. However, the disadvantage is that the investor is not protected from risk if they invest directly in ordinary shares.


How does an investment bank make money as the underwriter of an IPO?

The managing underwriters (The investment banks) may underwrite the IPO on either a firm commitment or best efforts basis. In a firm commitment offering, the underwriters will purchase the shares at a discount (of usually 7%) and resell them for the full public offering price to institutional and individual investors. In contrast, a best efforts offering means that the underwriters are only committing their best efforts to sell the shares. Most reputable investment banks will underwrite an IPO on a firm commitment basis. If an IPO is being underwritten on a best efforts basis, it should serve as a warning signal to both the company and its potential investors. After all, how enticing will a company's shares appear if its investment bank is unwilling to shoulder the risk of holding the shares, especially when purchased at a discount? To help distribute the shares, the managing underwriters may form a syndicate composed of other investment banks. This serves two purposes. First, the underwriters may expand the marketing of the company's shares through other investment banks. Second, the managing underwriters may reduce their risks by allocating shares to other investment banks. The syndicate members may agree to participate by either purchasing and reselling the shares, or just marketing the shares to their institutional and individual clients. This 7% is how, investment banks make money during an IPO process...

Related questions

What kind of investment is 100 shares of walmart?

single shares


Is buying and selling shares an investment?

lien marking for buying investment


What are the differences between Vanguard Admiral Shares and Investor Shares, and which option would be more suitable for my investment goals?

Vanguard Admiral Shares typically have lower expense ratios and higher minimum investment requirements compared to Investor Shares. Admiral Shares are more suitable for investors with larger amounts to invest, while Investor Shares are better for those with smaller amounts. Choose Admiral Shares if you have a significant investment amount and want lower costs, and Investor Shares if you have a smaller investment amount.


What an example of an investment?

buying shares in a company.


What investment firms bought shares in AIG?

Several investment firms bought shares in AIG. Some of the investment firms are Ameriprise, Wells Fargo, Morgan Stanley, Fisher's Investments, and Charles Schwab.


What are the advantages and disadvantages of direct investment in ordinary shares?

Direct investment in ordinary share is less complicated. However, the disadvantage is that the investor is not protected from risk if they invest directly in ordinary shares.


What is the name of the investment of 100 shares of Wal-Mart?

Single Stock


What is financing activities?

Issues of shares, repayment of loan, sale of an investment.


Are shares real property?

Generally, (investment) shares are personal property unless you are referring to shares in real property. If three people own real property together, their shares are real property.


What is the meaning of 'buyback' as in 'buyback of shares'?

Is the getting back or recall of an investment fund from an insurance broker or a investment comapny/bank


Which of the following is an example of an investment?

Buying shares in a company


What is the open-end management investment industry?

The open-end management investment industry is comprised of investment companies that sell shares in open-end mutual funds