Question

how swot analysis, time value of money, forecasting, and investing in stocks have an impact to an individual. explain each how it influence an individual.

Answer 1

Yes, all this concept will be having an effect over the individual in different prospect of life as SWOT analysis will mean that and individual will be applying in case of investment of a company and he will also be applying in other works of the life by by looking at strength weakness opportunities and threats and he should be trying to analyse various kinds of opportunities along with threats and weaknesses as well as strength so he would be trying to analyse various prospect of a company or investment and it will be providing him with a better idea to invest or make decisions in life.

Time value of money is another important financial concept that will advocate that value of money will be depreciating over time as similar amount of money will be having a lower worth in later years so it will also mean that the value of the money will be depreciating over time due to factors like inflation and other macro factors and the disposable value of the money will be getting lower in nature so time value of money would be helping him in making various kinds of investment decisions and other financial decisions.

Forecasting is a process of futuristic projection of various scenarios in the life and it will be helping an individual majorly to make decisions relating to investing and it will also help in forecasting the future cash flows related to a project or it will also help in forecasting future cash flows relating to an investment and it will be providing with better idea of futuristic projections.

Investing in stocks will also be having a influence upon individual because it will be helpful in order to make a higher rate of return and it can also be leading to compound his overall rate of return in the future and getting a financial independence that will help him in order to make decisions independently so investment in stock is a very important decision which is taken in respect of various individuals to improve the life structure and owning various securities.