dlehnersauder

In class 7, finances was the topic at hand. Among the vast array of topics involving finances, investors’ decisions on safe or risky investment opportunities was mentioned. More specifically, the topic of stocks as an investment to receive return was discussed. Stocks are a risky method of investment, and thus often yield negative return.

With that in mind, I came across a morsel of information regarding Microsoft that could attract or repel current or potential investors: “Microsoft will formally unveil Monday a lineup of smartphones using the revamped version of its mobile operating system, Windows 7. The phones will be available through AT&T and T-Mobile USA.”[1]

This small piece of information grants investors the insight they need to decide if they want to, or do not want to invest in Microsoft. Investors could look at the successes of competitors in the smartphone market, such as RIM’s Blackberry, Apple’s iPhone and Google’s Android and think Microsoft phones would thrive in the marketplace and the investment would yield positive returns. Other investors might look at the past failures of Microsoft in portable electronic devices (the Zune) and decide not to invest.

The relationship of risk and reward in business finances is often indistinct, and an individual’s interpretation of information can lead to a great, or terrible investment.

Daniel Boissonneau-Lehner

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[1] Investing. Wall Street Journal Online. Accessed October 9, 2010. <http://online.wsj.com/article/SB10001424052748704442404575542542632963332.html?KEYWORDS=stock+market>