
Investment Basics Flashcard
Flashcard
•
Financial Education
•
12th Grade
•
Practice Problem
•
Hard
Wayground Content
FREE Resource
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8 questions
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1.
FLASHCARD QUESTION
Front
What are considered common investment vehicles?
Back
Stocks, bonds, and mutual funds
2.
FLASHCARD QUESTION
Front
How do shareholders typically earn a profit from stocks?
Back
By receiving dividends
3.
FLASHCARD QUESTION
Front
What is the primary risk associated with stocks?
Back
High volatility
4.
FLASHCARD QUESTION
Front
What does purchasing a bond essentially mean?
Back
Lending money to the issuer
5.
FLASHCARD QUESTION
Front
What is the main advantage of bonds over stocks?
Back
Greater stability
6.
FLASHCARD QUESTION
Front
What is a mutual fund?
Back
A collection of stocks and bonds
7.
FLASHCARD QUESTION
Front
Why is diversification important in investing?
Back
It reduces overall risk
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