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Investment Basics Flashcard

Investment Basics Flashcard

Assessment

Flashcard

Social Studies

11th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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9 questions

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1.

FLASHCARD QUESTION

Front

Why do companies sell shares of stock?

Back

To raise money for expansion

2.

FLASHCARD QUESTION

Front

Is a stock considered a safe or risky investment?

Back

Risky

3.

FLASHCARD QUESTION

Front

What does diversification mean in investing?

Back

Investing in multiple companies to reduce risk

4.

FLASHCARD QUESTION

Front

Which is more risky: investing a lot in one company, or a little in a lot of companies?

Back

Investing a lot in one company

5.

FLASHCARD QUESTION

Front

What is a mutual fund?

Back

A professionally managed collection of investments

6.

FLASHCARD QUESTION

Front

What does an index fund do?

Back

Copies a specific index for low cost and steady returns

7.

FLASHCARD QUESTION

Front

What is the difference between a stock, a bond, and a mutual fund?

Back

Stocks are ownership in a company, bonds are loans, mutual funds are collections of investments.

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