Jane Shenteng and Wendy Nguyen are final year students at Solbridge International School of Business majoring in accounting and finance. They have been good friends since they first met during freshmen orientation week. Each has already found a job that will begin after graduation. Shenteng has accepted a position as an assistant accountant in a medium-size manufacturing firm in China. Nguyen will be working for Price-Waterhouse Coopers, one of the big four auditing firms as an audit assistant in Vietnam. Each is looking forward to the challenge of a new career and to the prospect of achieving success both professionally and financially. Shenteng and Nguyen are preparing to register for their final semester. Each has one free elective to select. Shenteng is considering taking a swimming course offered by the physical education department, which she says will help her socialize in her business career. Nguyen is planning to take an investments analysis course and has been trying to convince Shenteng to take investments analysis instead of swimming. Shenteng believes she does not need to take investments analysis because she already knows what common stock (ordinary shares) is. He believes that whenever she has accumulated excess funds, she can invest in the stock of a company that is doing well. Nguyen argues that there is much more to it than simply choosing common stock. She thinks that exposure to the field of investments would be more beneficial than learning how to swim.

Questions: 1. Explain to Shenteng the structure of the investment process.

2. List and discuss the other types of investments with which Shenteng is apparently not aware of.

3. Assuming that Shenteng already gets plenty of exercise, what arguments would you give to convince Shenteng to take investment rather than swimming?

4. As a 24-year-old student is investing in common stock good for Shenteng?