Investing Your Money - Flocabulary

It is a good idea to keep ____________ in a savings account.

• all of your money

• as little money as possible

• six months of living expenses

• six years of rent

When you diversify your investments, you _________.

• could lose all your money on one risky investment

• cannot lose money through investments

• invest only in safe options

• spread out your money between different investments

A shareholder _________

• lends money to a company to be paid back later

• owns portion of a company

• invests money on someone else's behalf

• shares your investments with you

When you purchase a mutual fund, you __________

• invest in a company and the company invests in you.

• invest in a group of stocks and bonds that an expert selects.

• trade each of your stocks for a bond

• can choose which stocks an expert will invest in

Bonds are ________

• money you lend to a business or government

• money the government lends you to invest in a new company

• very risky investments

• the same as savings accounts

Andrea receives a portion of a company's profit regularly. Andrea is receiving ________from this company.

• stocks

• shares

• dividends

• bonds

Julia purchases a US Bond with a maturity date that is 10 years away. If she takes out her money after 8 years, she will _________

• owe the government money

• owe a dividend

• make more money

• make less money

Kempton invests $1,000 in a company when the price of its stocks is high. He doesn't sell it until its price goes down. According to the basic rule of investing, what did Kempton do wrong?

• He should have waited for the stock's prices to go up even higher before buying it.

• He should have invested more money in this company.

• He should have sold the stock the day after he bought it, whether its price went up or down

• He should have bought the stock in a company with the price was low and sold it when the price went up.

Six years ago, Robert bought one share of a company for $40. Today the price of that stock is much lower. Robert __________

• lost money on this investment

• made money on this investment

• should buy more shares now and make a profit

• is now owed money by the company

Serena is deciding how to invest her money to increase her changes of making a large profit Which of the following would be best for her to do?

• She should invest her entire savings in the riskiest company

• She should diversify her investments

• She should keep 99% of her money in a savings account

• She should put all of her money in bonds.

Tags

CCSS.HSS.MD.B.7