Invest

Investing

• Stock - is an investment that represents a company

• Share - a piece of the stock (company)

• Mutual Fund - investment that uses money from investors to invest in stocks/bonds. Professionally managed.

• Diversification v

Multiple Choice

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

Multiple Choice

Which of the following correctly orders the investments from LOWER risk to HIGHER risk?

• Bond − Stock − Diversified mutual fund

• Stock − Bond − Diversified mutual fund

• Bond − Diversified mutual fund – Stock

• Diversified mutual fund − Bond − Stock

Multiple Choice

Spreading your investments around to increase financial security

• Risk assessment

• Diversification

• Stocks, bonds & cash

• Liquidity trap

Multiple Choice

Professionally managed, diversified investment that pools resources of many investors

• Treasury bonds

• Stock index

• Mutual fund

• Saving account

Multiple Choice

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.

• A share of ownership in a company

• A collection of investments sold as a package.

• An option to purchase something in the future at todays price.

Multiple Choice

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

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

Multiple Choice

If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?

• $10

• $40

• $20

• -$20