Investing and Shares

When investing in shares we can reduce our exposure to risk by not "putting all our eggs in one basket". This is called

• Differentiation

• Diversification

• Dissection

When we own shares in a company they have to share their profit with us. These payments are called

• dividends

• interest

• commission

When a firm offers shares to people that they know

• Private Issue

• Public Issue

When a firm offers shares to anyone that wants to buy them.

• Private Offer

• Public Offer

When a firm first issues shares to the public it is called a(n)

• UFO

• IPO

• CPU

Answer explanation

Initial Public Offering

To diversify your share port-folio means not putting all your ____ in the same ______.

A person who buys and sells shares for you

• Investor

• Stockbroker

• Sharebroker

• Agent

A NZ company that formed 5 years ago to make investing in shares more accessible. (Maybe do a quick google search to get the spelling correct)

One way of making money on shares is to buy them low and sell them high. This is called ...

• dividends

• capital gain

• commission

• interest

(A tricky one). We can also make money if shares fall in price. This is called

• short selling

• fraud

• luck

• long selling

Answer explanation

this is what the movie "The Big Short" is all about.