Why Women Invest Differently than Men essay sample

Haven't found the essay you need?

We can write it for you. On time. 100% original.

Order Now
Text Preview

Why Women Invest Differently than Men

Table of Contents

Introduction……………………………………….…………………....……….……..

Investments……………………………………………………………………………

Men vs. Women – professions and gender income gap…......…………….…………..

Men vs. Women – confidence and investment strategy......……………….…………..

Conclusion……………………………………………………………………………..

Introduction

Investment as a financial activity is becoming an increasingly popular topic in the modern world. Whenever a person wishes to multiply his or her wealth, to safeguard the existing assets or make a retirement plan, this is a direction in which this individual will have to start moving. However, once investment activities are concerned, there is a frequently stated difference between the men’s and women’s perceptions of this endeavor, and the subsequent financial decisions which the two genders make. One might wonder, why exactly is this difference important – and there are plenty of possible motivations. First of all, this twenty-first century has seen the birth of personalized marketing in multiple kinds of goods and services: one size fits all is no more an option within the current rapidly developing and highly competitive marketplace.

This way, if there are perfumes or watches specifically for men and women, why wouldn’t investment products follow suit? Sometimes in business (as possibly in this situation), shaping demand before it is actually emerging is a more optimal strategy than capturing what already is there. However, in order to offer a really well-tailored product (in our case, potentially an investment package), it is vitally important to first understand all the inns and outs of subject at hand. That is, how specifically the men’s and women’s investing strategies are different, what causes it, and what are the possible relevant triggers and other details. Second possible use of the uncovered differences between the two genders’ investing is understanding and hedging the decision biases. For instance, which kind of shifts in the investment strategies can be expected from a male CFO versus the one who is female, and what are the possible subsequent upsides, downsides, and remedies to the latter.

Investments

In general, the primary goal of any financial investment is to maximize the return on capital. By diversifying one’s portfolio across different assets such as stocks, bonds and money market securities, a person allocates his or her investments among various assets in an attempt to lower risk and potentially increase profits. A widely used definition of a financial risk is “the uncertainty that an investment will earn its expected rate of return” (Reilly & Chance 11), where the balance between risk and return varies by the type of investment. Bonds are loans made by investors to an entity in exchange for a fixed rate of return at maturity and a coupon rate agreed upon at the beginning of the contract. These functions are largely similar to collecting interest if one was to put money into a savings account. Since the risk of a loss of principal is generally small, investing in the bond market is generally considered as less risky than stocks (Rein 23). Stocks are securities that signify ownership share in a company. Due to the risk of losing your entire investment if the company fails, …

Download Full Essay Show full preview

Disclaimer

Samples available at the Examples Assignment Lab are for inspiration and learning purposes only. Do not submit any sample as your own piece of work. Every essay belongs to students, who hold the copyright for the content of those essays. Please, mind that the samples were submitted to the Turnitin and may show plagiarism in case of the secondary submission. Examples Assignment Lab does not bear any responsibility for the unauthorized submission of the samples.