Investing Flashcardz Fall 2022

Front

A key difference between saving and investing is

Back

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

Front

Why is compound interest more beneficial than simple interest?

Back

Your money grows faster when it is compounded

Front

Which would be considered the highest risk investment type (of those shown)?
Options: Stock, Bond, Mutual Fund, Money Market Account

Back

Stock

Front

Historically, the relationship between risk and return can be stated as

Back

Higher risks will have potential for higher return

Front

Andy earned $300 on a $1000 investment. What is his ROI (return on investment)?

Back

30%

Front

A diversified portfolio is desirable because

Back

It often times decreases or minimizes risk

Front

Why is it important to start investing as soon as possible (when you are young)?

Back

You have more time for your money to compound.

Front

True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.

Back

False

Front

You bought 10 shares of stock in StreamingVideoCo for $40 per share. Three months later you sold the ten shares of stock for $100 per share. What was your gain or loss on StreamingVideoCo stock?

Back

Gain of $600

Front

You can always profit from stocks by holding the shares of stock for at least 5 years.

Back

False