What investment vehicle has created the most billionaires ?

Q. I know that real estate has created the most millionaires but now that I think about it I only know of 2 real estate billionaires. So what is the investment vehicle that has created the most billionaires?? Im guessing oil/large corporations?

A. The Internet has created many overnight millionares. E-bay alone rakes in Billions.

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What is an investment bank and how do investment banks earn money?

Q. It would be best if you could explain it with an example. What do they offer to customers and what do they get in return? Also i want to know what are retail banks and how do they work?

A. Investment banks collect a large number of small accounts and invest the money in companies that require capital. Hopefully their expertise in the market will mean that these companies make lots of money and pay nice dividends when the money has been invested in stock and high interest where the money has been loaned. This forms the income for the investment bank. In return they pay returns on the smaller accounts at a lesser rate. The difference is their profit.

Retail banks are the ones that you see on the high street, offering current and savings accounts for day to day use by business and individuals. They earn their money by lending at a higher rate than they pay to depositors.

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What is an investment bank and how do investment banks earn money?

Q. It would be best if you could explain it with an example. What do they offer to customers and what do they get in return? Also i want to know what are retail banks and how do they work?

A. Investment banks collect a large number of small accounts and invest the money in companies that require capital. Hopefully their expertise in the market will mean that these companies make lots of money and pay nice dividends when the money has been invested in stock and high interest where the money has been loaned. This forms the income for the investment bank. In return they pay returns on the smaller accounts at a lesser rate. The difference is their profit.

Retail banks are the ones that you see on the high street, offering current and savings accounts for day to day use by business and individuals. They earn their money by lending at a higher rate than they pay to depositors.

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What investment vehicle takes advantage of compounded interest?

Q. Am I correct that you do not really compound your money when you buy stocks since your money doesn't get re-invested yearly? My 10,000 will only increase in value in 10 years if the price of the stock goes up and not because my 10,000 gets compounded annually (unless the company offers dividends which I could re-invest yearly).

If not stocks, then what other investment vehicles takes advantage of compounded interest? Money market and bonds?

A. Compound interest is specific to money placed into interest bearing instruments such some CDs Saving accounts, and money markets. The so called miracle of compound interest growing the principle is the interest paid over a period which could be daily, weekly, monthly, or yearly is added to the principle and interest is then earned on the new amount. Some CDs do not compound interest and only pay interest on the initial deposit over the entire term of the CD. Stocks do not have a fixed principle and dividends are calculated different than interest so while when you reinvest the dividends you buy more stock it does not guarantee a steady rate of return like compound interest. Bonds often pay a fixed rate of return in interest but the value of the bonds can fluctuate and will not follow the standard compound interest calculation. WIth either stocks or bonds it is possible to end up with less money than initially invested at the end of a period even though all earnings interest and dividends were reinvested. A general rule of thumb for compound interest is the rule of 72. Divide 72 by the fixed interest rate and that is how many years it takes the initial principle to double. For example, If you invest at 9% compound interest the principle will double in 8 years.

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How do I deduct investment advisory fees paid for professional investment services on my IRA,?

Q. An IRA, by definition, is deferred tax account. However, I did not use money inside the IRA to pay for the fee. I used "other money" from a non-IRA brokerage account. What is the form I use to list my fee's (paid about $8K in 2007).
Is this bundled with other deductions to meet a threshold?
Is there anything else I need to know?

Thanks all

A. Correct. It goes on Schedule A and is limited to 2% of your adjusted gross income.

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When do investment banks make you start working?

Q. When do big investment banks want the new college graduates they accepted to start their work at the firm ?

Right after graduation ?

A. Ideally right after graduation. I've heard of people deferring their start date for several months so they can travel and whatnot.

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What investment vehicle has created the most billionaires ?

Q. I know that real estate has created the most millionaires but now that I think about it I only know of 2 real estate billionaires. So what is the investment vehicle that has created the most billionaires?? Im guessing oil/large corporations?

A. The Internet has created many overnight millionares. E-bay alone rakes in Billions.

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