203PFM - Investment Options & Profiles Quizz

The owner of a company is called a...

• Businessman

• Bond master

• Broker

• Shareholder

An amount of money paid by a company regularly to it's shareholders

• Profit

• Bonds

• Dividends

• Cash back

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

• debt

• ownership

• risk

The chance of loss.

• Stock

• Reward

• Risk

• Real Estate

Justin wants to go to spend a month traveling Europe next summer but doesn’t have the money to do so. He’s thinking of investing the $700 he currently has saved in stock in his favorite restaurant in hopes of earning the money for the vacation. Why shouldn’t he do that?

• Investing in one company is quite risky.

• Investing your whole savings in the share market is a risky financial move.

• One year probably isn’t enough time for one share to turn $700 into a month’s vacation.

• All of the above

Your risk tolerance for investing should be determined by these two factors:

• Your shares and bonds

• The time period of the investment and when you will need access to the money.

• Your debits and credits

• Your education level and ethnicity

A market where shares in companies are bought and sold through an organized system.

• Portfolio

• Index

• Stock Exchange

• Trading

A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor.

• Stock

• Bond

• T-Note

• Mutual Fund

When an investor chooses to invest in a large variety of shares, bonds and/or other investments, as a way to reduce your overall risk.

• Dividends

• Mutual Fund Investing

• Portfolio

• Diversification

The overall collection of investments held by a person.

• Fund

• Portfolio

• Savings Account

• Deposits