Monday, August 26, 2019

The Investor Life Cycle of ZipCar, Facebook, and Dunkin Doughnuts Coursework

The Investor Life Cycle of ZipCar, Facebook, and Dunkin Doughnuts - Coursework Example Zipcar, Facebook and Dunkin Doughnuts are companies operating in different industries, and therefore attract different investors in varying stages of the Investor Life Cycle. The four-stage investor life cycle includes the following: accumulation, consolidation, spending, and gifting. According to Hartung (2014), the growth of social networking giant on the back of increasing demand for social media would make the company’s stock idea for the individual who intends to accumulate. The basic notion behind this stage in the investor life cycle is that investors seek to aggressive growth for the future hence this is a fit beyond doubt. On the other hand, Krantz (2014) opines that Dunkin Doughnuts is a stable prospect for the future. Therefore its stocks fit perfectly within the second stage, as that stage typically asserts that an investor would be inclined to who perceive retirement planning as more vital, and hence, these stocks would fit perfectly into their bill. Zipcar’s continued dwindling fortunes in the market and recent mergers news would make its stock a perfect bill for an investor within the investor’s life cycle known as gifting (Savitz, 2013). In this phase, investors are more prone to have assets remaining at the end of their lives, but they focus more on estate planning. According to Burton (2013), calendar effects have emerged as a vital aspect of behavioral finance amongst present investors in the country. Calendar Effects implies that people analyze specific dates and periods in which stock prices to rise. This is absurd, but Wall Street research over the few years has validated this claim.  

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