You will complete this discussion based on the role of investing in the financial planning process, how the securities market facilitates investing, and key elements for managing an investment plan.

Respond to the following questions:

Discuss the role of investing in the financial planning process by addressing the following:

What are your thoughts as to how you will fund an investment program? Discuss if you would be willing to trade$-$off enjoyment earlier in life in order to conserve funds to make them available for investing and provide your rationale.

Describe two investment objectives that would be the basis for your plan. Next, rank them in order of importance and indicate your time horizon for completion such as $5$ years, $10$ years, etc.

If you were to describe yourself according to your investment risk tolerance, how would you respond? For example, would you be comfortable with the fact that an investment could go up and down and that you could actually lose money? Comment on the impact of taking the alternative $($safe$)$ approach of depositing these funds into a savings account. Next, discuss one other variable that could set the tone for your investment program.

Characterize how the securities market facilitates investing by addressing the following:

Describe the difference between the primary market and the secondary market. If you were purchasing a newly$-$issued share of stock in technology startup company, in which market would this occur? Next, if you were buying a share of previously$-$issued stock in General Motors, indicate the market in which this would occur.

Summarize the role of the NYSE and the NASDAQ stock exchange in facilitating the investment process.

Describe the role of the stockbroker in facilitating investment transactions. If you were to start an investment program today, indicate if you would utilize the services of this type of individual, or of you would conduct your own investing online and provide your rationale.

Describe the key elements for managing an investment plan by addressing the following:

Assume that you are interested in purchasing a share of stock. Describe the difference between a market order and a limit order and indicate when each would be appropriate.

Assume that you are interested in selling a share of stock. Describe the difference between a market order and a stop$-$loss order and indicate when each would be appropriate.

Describe the purpose of an $$Annual Report,$$ the type of investment$($s$)$ that it would relate to$,$ and indicate how you could utilize it to manage your investments.

Select one of the stock indexes addressed in this module $($e$.$g$.$ Dow Jones Industrial Average, S & P $500,$ NASDAQ Composite$),$ describe its purpose, and indicate how you could utilize it to manage your investments.