Stocks Bonds and Mutual Funds

What is a large pool of money that several people put together, and that is usually invested in stocks and bonds and managed by a financial expert?

• Mutual fund
• Stock
• Bond
• Bitcoin

As an investor, if you wanted to diversify your retirement portfolio, which financial product should you select?

• Stock
• Mutual fund
• Bond
• Bitcoin

Stocks represent ownership in a corporation.

• TRUE
• FALSE

People who invest in stocks cannot lose their money.

• TRUE
• FALSE

Mark bought 100 shares of Intel stock. Each share sold for $35.50. If no fees were involved, Mark paid $3,550 for the shares.

• TRUE
• FALSE

One way stockholders make money is by selling their stock for more money than they paid for it.

• TRUE
• FALSE

Why would someone buy a bond instead of a stock?

• It is a less risky investment
• It can yield a higher return on investment
• To have ownership in a company
• To receive dividend payments

What is a bond? 

• a certificate of ownership in a corporation, with the right to a share of the earnings 
• a certificate representing a loan from an investor to a corporation or government entity 
• a payment from an investor to a corporation for the rights to future profits 
• a group of stocks sold together for a set price 

People buy stocks because...

• they expect to earn a return
• there is no chance of a loss
• they are guaranteed interest payments each year
• the government encourages them to buy stock

One way people can earn money from stocks is by...

• selling the stock for the same price as the price they paid for the stock.
• buying stock from an investment banker
• selling the stock for a lower price than the price they paid for the stock.
• selling the stock for a higher price than the price they paid for the stock