commerce task 2

• • provide individuals and businesses with the tools, advice and guidance to manage their financial resources
  • develop and maintain chosen financial systems 
  • provide advice and oversight on the management of investments to ensure long-term financial gain
  • ensure transactions are processed accurately and in accordance with laws and policies
  • assist in the identification, evaluation and mitigation of risk
  • provide financial reports 
• The ASIC is a government body whose role is to enforce the laws regarding company and financial services to protect Australian consumers and investors. It is important  as its role is maintaining the financial system and monitoring investments.
• Examples of factors influencing your investment portfolio: – the risk of different investment options – diversification (spreading the risk by investing in more than one option) – the investor’s short- and long-term goals
• Changes in personal circumstances


  Lead to variations in investment decisions
• Someone starts to struggle financially

  They may be forced to sell their investment option so that they can use the money for something else
• Someone starts to struggle financially


  This situation may prevent them from making any kind of investment in the near future
• Someone finds themselves in a better financial position than in the past


  They may decide to contribute some of their surplus funds into an investment option
• The economy

  Can also impact on investment decisions
• During a downturn

  Many businesses will experience a decline in profits, and so may be reluctant to commit to any investment options, particularly in the short term
• During a downturn

  People usually have less disposable income and may therefore be hesitant to undertake any form of investment
• During a boom

  The opposite is true