Question

In: Finance

Please read the following article: "Is the stock market good stewardship?" As previously discussed in week...

Please read the following article:

"Is the stock market good stewardship?"

As previously discussed in week 3, a direct relationship exists between higher risk and higher returns. In order for an individual or organization to recognize higher returns on their investments, it usually requires the assumption of a higher level of risk. Please answer the following questions:

Is it appropriate for Christians to assume a high level of risk in their investment portfolios? When might it be appropriate?

Is it appropriate for nonprofit organizations who rely upon donations to invest in risky assets such as the stock market?

Assuming there should be limits, what types of investments would or would not be appropriate?

What implications do your positions have for the potential investment income or operations of the nonprofit organization or the individual’s financial position?

1) No Christians are frbidden from gambling. Speculative investments is non-biblical.

2) It might be approporate if the proceeds are directed towards the church only.

3) No. It is not appropriate to use people's donations for speculative purposes.

4) Investing high rated bonds is appropriate.

Solutions

Expert Solution

Christians associate the term stewardship with giving but it actually includes all aspects of managing the wealth that God puts in 2 hour hand and that includes making wise Investments in today's climate speculation where day traders and millionaires are often in the LimeLight it's easy for people to equate prudent investment there's one use difference between by biblical perspective on investing and all currentculture infatuation with Millionaire we are trustees electricity normally does not take high risk with owners wealth Christians on the other hand or already wealthy people they can use their money in investment but not the money of donation the desire to get rich quickly out the bicycle voice that cancels us to set aside from current abundance against the future need as Christians are good stewards over the money and wealth with which God has provided them so before they consider investing in stocks they must find it out within God's will is investing in stock a god's honoring way to grow their finances or it's really being careless with quotes money an investment is not gambling there is actually where a lot of Christians develop of fear of stock market most people who make this exam Sandhu so either out of fear or ignoring some of your full of investing because it seems to be complicated so they assume that no one can understand it and so everyone must be gambling an investment in stock does not show a lack of faith in God but yes using donation money using peoples fund for speculative purposes is not justified the Bedrock of a biblical understanding of wealth is that it all belongs to God but he entrance to manage it during our lifetime are task is to decide how to divide the pie how much to use when and how much to invest to wear We Are basically Trustee electricity normally does not take high risk with the owner's capital or owners wealth when you interest assets to financial manager you expect rational plans for putting the money to work not reasonable risks in hope of quick pay and is not certainly accepted to use donation money people donation money the people donate it with great faith and great sacrifice their hard on the money to invest in high-risk portfolios


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