Unit B Quiz Review Flashcards

Front

What is the benefit of starting to invest early?

Back

Starting to invest early allows time for compounding to work, helping your investment to grow.

Front

What are bonds?

Back

Bonds are loans that you give to organizations or companies.

Front

What are stocks?

Back

Stocks allow you to have partial ownership of the company you invest in.

Front

Which is riskier: stocks or bonds?

Back

Stocks are often more risky than bonds.

Front

What is compound interest?

Back

Compound interest is interest on the amount of money you have saved and on the interest you have already earned.

Front

How does investing compare to general savings accounts?

Back

Investing typically involves higher rates of return compared to general savings accounts at banks and other financial institutions.

Front

What is diversification in investments?

Back

Diversification minimizes risk by having different investments in your portfolio.

Front

How can you earn money from stocks?

Back

You can earn money from stocks by selling them at a higher price than you paid or by receiving dividends.

Front

What is an IPO?

Back

An IPO, or Initial Public Offering, is when companies raise money by issuing shares of ownership through a stock exchange.

Front

What is a stock quote?

Back

A stock quote is a resource investors use to evaluate the performance of a stock or company, showing details like market cap, current share price, and historical performance.