What is stable value in Class 11 commerce accounts?
Understand the Problem
The question is asking for an explanation of the stable value, which is a concept typically studied in a commerce or accounting context at a Class 11 level. It may involve defining stable value, its characteristics, or its significance in accounting practices.
Answer
Stable value refers to a low-risk investment option focused on principal preservation and liquidity, providing steady returns.
Stable value in Class 11 commerce accounts refers to a lower-risk investment option that focuses on principal preservation and liquidity, aiming to provide steady positive returns and a stable net asset value.
Answer for screen readers
Stable value in Class 11 commerce accounts refers to a lower-risk investment option that focuses on principal preservation and liquidity, aiming to provide steady positive returns and a stable net asset value.
More Information
Stable value investments are commonly used in retirement plans, such as 401(k)s, as they provide a predictable return while minimizing the risk of losing the initial investment (principal).
Tips
A common mistake is confusing stable value with high return investments. Stable value focuses on preserving the original investment rather than maximizing returns.
Sources
- What is stable value? - stablevalue.org
- Understanding Stable Value - New York Life Investments - newyorklifeinvestments.com
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