Chapter 19 Savings & Investing Strategies

Investing means using your savings to earn more money

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The more frequently interest is compounded, the slower the growth in savings.

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• False

If a stock increases in value and is then sold for more than its original cost, a capital gain results.

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Usually, higher risk investments pay higher yields than lower risk investments.

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Before a corporation can pay bondholders the rate of interest promised to them, it must first pay dividends to stockholders.

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Investors who do their own research can save money by using a full-service broker.

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• False

Stocks of smaller companies are usually not traded on a stock exchange.

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• False

Most corporate bonds are issues for $10,000.

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• False

Land and anything attached to it is called real estate.

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• False

An investment with an unusually high risk is called a speculative investment.

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• False