Investment 101

What is investing?

• A short-term commitment to meet unexpected shortfalls. Helps meet short-term goals.

• A long-term approach to watch your money grow. Helps you meet long-term goals.

A mutual fund is

• like a loan where you are giving money in exchange for an interest payment.

• is issued by the government to support government spending (schools, roads, low-income housing).

• an investment with diversified stocks and bonds.

This has a fixed interest rate that you leave in the bank for a fixed period of time.

• Government Bond

• Stock

• Certificate of Deposit

Stocks are long-term investments.

• True

• False

When you buy a stock, you are buying a small piece of _______ in a company.

• debt
• ownership
• risk

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.8.5

CCSS.RI.7.5

CCSS.RI.6.5

Why do companies issue stocks?

• To create and investment opportunity into other businesses.
• To increase employee cooperation 
• To be traded individually
• To raise money for economic investment

What is an IPO?

• Initial Polling Office
• Initial Public Offering
• International Public Office
• Increasing Public Opportunity

The chance of loss.

• Stock
• Reward
• Risk
• Real Estate

The "rate of return" is

• The rate of how long you have to hold an investment

• The rate that you have to pay to buy an investment

• The percentage of increase or decrease expressed by percentage of the investment's cost

• The interest rate earned

A single share of ownership of a legally formed company is called a:

• Bond

• Mutual Fund

• Annuity

• Stock