Investing Basics 1

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A key difference between saving and investing is

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Saving is for emergencies & goals, investing is for long-term wealth

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The chance of losing your money is called...

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Risk

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Which would be considered the highest risk investment type? Options: ETF's, Saving Accounts, Bond, Dividends

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ETF's

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Why is it important to start investing as soon as possible?

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You have more time for your money to compound

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What is the primary reason for a company to issue stock?

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To raise money to grow the company

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This is when you loan money to a business or government and they pledge to repay a specific amount of money along with interest.

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Bond

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How risky are bonds when investing?

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Very Risky

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When you invest you...

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Own a small piece of that company or organization.

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When companies share their profits with shareholders usually in the form of cash and on a regular schedule.

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Dividends

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Your initial investment is referred to as

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principal