Investments

What is a mutual fund ?

• connection between stock broker and buyer

• a connection between a company and the buyers that allows them to sell stocks

• a bank account that has multiple users and all are allowed to spend money

• an investment fund set up by the company that receives money from many investors

Great for emergency funds due to their liquidity and stability

• Savings Accounts

• CD's - Certificate of Deposits

• Retirement Account

• Brokerage Account

Saving and investing have nothing to do with the amount of money you make.

• True
• False

You can start investing with a small amount of money.

• True

• False

Which would be considered the highest risk investment type?

• stock

• mutual fund

• bond

• money market fund

What is the chief reason corporations issue stock?

• To raise money for the corporation

• To give consumers ownership in the company

• To secure tax advantages

• To help the economy

When John bought a Microsoft bond, he was:

• borrowing money from Microsoft

• Buying part ownership of Microsoft

• Investing in a liquid instrument

• Lending money to Microsoft

What is a good habit to develop as a young adult?

• Attending Parties with Friends

• Saving money with every paycheck

• Borrowing money for emergencies

• Living Paycheck to Paycheck

What determines the amount of money you can gain or lose in Investing?

• Principal Deposit

• Interest Rates

• Payments to Checking Account

• How much you Save each paycheck

What is the indicator that shows your Investment is losing or gaining money in your portfolio?

• Checkbook balance

• Stock Market

• Bank Withdrawals

• Daily Purchases