Investing Review

Front

What are two ways an investor can make money from investing in stocks?

Back

An investor can make money by receiving dividends or by selling the stock at a higher price than what they bought it for.

Front

What benefits do shareholders receive in a public company?

Back

Shareholders may receive dividends if the company pays them, and they have ownership of a portion of the company.

Front

What is a debt investment where the investor loans money to an entity?

Back

A bond.

Front

What is real estate in the context of investing?

Back

Property of some type that can be rented out or sold at a higher price.

Front

What is a key characteristic of Exchange Traded Funds (ETFs)?

Back

ETF prices can change throughout the day as they are exchanged on the market.

Front

What is the primary purpose of investing in stocks?

Back

To gain ownership in a company and potentially earn returns through price appreciation and dividends.

Front

What is the difference between stocks and bonds?

Back

Stocks represent ownership in a company, while bonds are a form of debt investment where the investor loans money to an entity.

Front

What does it mean to receive dividends as a shareholder?

Back

Dividends are payments made by a company to its shareholders, usually from profits.

Front

What is the significance of market fluctuations for ETFs?

Back

Market fluctuations affect ETF prices, allowing investors to buy and sell throughout the trading day.

Front

What factors should an investor consider when investing in real estate?

Back

Location, market trends, property condition, and potential rental income.