Asset Classes Essay Example | Topics and Well Written Essays - 500 words

Asset Classes - Essay Example Currently, Merrill Lynch handled investments in several asset class types. The company’s current fund holdings include Retail Holdrs Fund. The Fund’s trading symbol is ROHD. The fund falls under the Consumer Cyclical asset class category. Merrill Lynch also invests in Europe 2001 Holdrs Fund. The Fund’s trading symbol is EKH. The fund is categorized as a European Stock asset class. Another Merrill Lynch fund investment is the Telecom Holdrs Fund. The Fund’s trading symbol is TTH. The fund is categorized as Communications category asset class. Finally, the company entertains investment activities in the Software Holders Fund. The Fund’s trading symbol is SWH. The fund is placed under the Technology category asset class (biz.yahoo.com). Home Depot Inc. belongs to the Dow 30 companies. The company belongs to the stock investment asset class, a blue chip Class A asset class. People invest in the company’s stocks. In return, the investors hope to generate dividend income from their investments. If the company generates net profits, the investors will receive their expected dividends. On the other hand, if the company does not generate a net profit, the company will not be able to deliver the expected dividends to the eagerly waiting investors. The Dow Jones Industrial Average (DJIA) shows the average price of the United States stock exchange’s 30 blue chip Class A stocks. Home Depot Inc. is one of the Dow’s 30 blue chip stocks (Fredman, 1998). The company’s stock market price on October 23, 2012 is pegged at $61.75 per share in the stock market. The price dropped by 0.47 percent compared to its prior trading day’s share price. The company’s 3rd quarter financial statements show that the company was able to favorably generated $0.70 earnings per share figure. This means that all stockholders of Home Depot Inc. are forecasted to receive $ 0.70 for every share that they invested in the company. A