Investing Review

Front

You are a new employee at your first full time job and you have no debt. Your employer offers a 401k match where if you contribute to your retirement, they will match a percentage. If retirement is important to you, should you contribute to your 401k now?

Back

Yes

Front

Why is diversification a recommended investment strategy?

Back

Diversifying your portfolio helps reduce risk

Front

An actively managed mutual fund…

Back

Generally has higher fees than an index fund

Front

Investing in cryptocurrency is generally seen as being _____ risky than traditional investments like bonds and funds.

Back

More

Front

Over the last 50 years the average investment in the stock market grows about how much? Options: 4% - 7%, 7% - 10%, 10% - 12%, 12% - 15%

Back

7% - 10%

Front

This is a type of investment you can purchase that represents ownership of a part of a corporation. Units of this are called "shares."

Back

Stock

Front

This is a type of investment you can purchase that represents part ownership of a corporation, and you get interest payments while you own it. Units of this are called "shares."

Back

Dividend Stock

Front

This is a type of investment that acts like a loan. For example, you pay $1000 to buy one, you get $50 a year (like a dividend) until it reaches maturity (agreed upon length of borrowing time), then get your $1000 back.

Back

Bond

Front

A type of investment consisting of a portfolio of stocks, bonds, or other securities. The investment is already diversified.

Back

Index Fund, Mutual Fund, Exchange Traded Fund (ETF)

Front

This type of investing account is used for buying and selling stocks, bonds, funds etc. without time related penalties. In other words, you do not have to wait until retirement to buy and sell investments in this type of account.

Back

Brokerage Account