Consumer Education - Unit 4

Front

A diversified portfolio is desirable because…

Back

It decreases risk

Front

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

Back

You have more time for your money to compound.

Front

Buying little pieces of a whole lot of different companies

Back

Mutual funds

Front

What is a stock?

Back

A share of ownership in a company

Front

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

Back

To distribute the risk of bankruptcy across more investors.

Front

Employer-sponsored retirement savings plan.

Back

401K or 403B

Front

This is a type of investment where investors pool their money together to buy stocks, bonds, and other securities

Back

Mutual Funds

Front

This is when a company will pledge to repay a specific amount of money along with interest

Back

Corporate Bond

Front

A time defined savings certificate entitling the bearer to receive interest + principal upon maturity

Back

Certificate of Deposit

Front

Which of the following investments has the highest risk and the highest potential rate of return?
Options: Stocks, Government Bonds, Mutual Funds, Savings Account

Back

Stocks