Investing for Beginners

All investments carry some investment risk.

• True

• False

The goal of investing is to

• Save for current consumption

• Use monies for eating out, and entertainment

• make your money grow

• Have money at the end of the year to go on a trip

All of the following are investment tools, except

• Stocks

• Bonds

• Mutual funds

• Groceries

A pool of money collected from many investors and used to buy stocks, bonds and other securities.

• Bonds

• Mutual Fund

• Stocks

• 401K

Investing is using money with the aim of making it grow.

• True

• False

Investors pooling their money together to purchase stocks, bonds, etc.

• Bonds

• Mutual funds

• Pooling

• Hedge funds

Profit or yield from an investment

• risk

• investment

• stock

• return

The ability of an investment to be converted in to cash quickly

• Conversion

• Liquidity

• cash turnover

• Risk

Chance that the value of the investment will decrease

• risk

• return

• liquidity

• option

A debt security or IOU

• bond

• stock

• IRA

• 401K