Investment Project Review

Front

What is an investment?

Back

An investment is the act of allocating resources, usually money, in order to generate income or profit.

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What does it mean to have a diversified financial portfolio?

Back

A diversified financial portfolio means having a variety of investments across different asset classes (like stocks, bonds, and real estate) to reduce risk.

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What is the stock market?

Back

The stock market is a place where shares of publicly traded companies are bought and sold.

Front

Are stock investments guaranteed to provide returns?

Back

No, stock investments are not guaranteed to provide returns; they can result in losses.

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What is a bond?

Back

A bond is a fixed income investment where an investor loans money to an entity (government or corporation) for a defined period at a fixed interest rate.

Front

What is the risk associated with investing in the stock market?

Back

The risk includes the potential loss of investment value due to market fluctuations.

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What is a savings account?

Back

A savings account is a deposit account held at a financial institution that provides a modest interest rate.

Front

What does it mean to take risks when investing?

Back

Taking risks when investing means accepting the possibility of losing some or all of the invested capital in hopes of achieving higher returns.

Front

What is capital gain?

Back

Capital gain is the profit earned from the sale of an asset, such as stocks or real estate, when the selling price exceeds the purchase price.

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What is a mutual fund?

Back

A mutual fund is an investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.