Investing 101

Front

A stock is a share of ownership in a company

Back

True

Front

A loan to a company or government is called...

Back

bond

Front

A part into which a companies capital is divided, entitling the shareholder to a portion of the profits.

Back

Share

Front

The owner of a companies shares.

Back

Shareholder

Front

An amount of money distributed by a company regularly to its shareholders

Back

Dividends

Front

A place where all transactions of buying/selling stock/shares issued by a company

Back

Stock Market

Front

Diversification is good because:

Back

It spreads the risk of investment

Front

What are the differences between stocks and bonds?

Back

A stock represents ownership, and bonds represent a loan.

Front

What is the primary reason to issue stock?

Back

To raise money to grow/expand the company

Front

Which investment is the most risky? Options: bond, stock, mutual fund, savings account

Back

stock