Investment Review

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

• Stock

• Share

• Dividend

• none is correct

A part into which a companies capital is divided, entitling the shareholder to a portion of the profits.

• Dividend

• Bond

• Share

• Stock

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

• Profit

• Bonds

• Dividends

• Cash back

Money borrowed for a project where their price is a function of the law of supply and demand. People who buy these ______ are lending money for a project.

• Share

• Mutual funds

• Bonds

• Capital

The possibility of losing all or part of your investment is known as

• asset allocation

• compounding

• return

• risk

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

This is a type of investment where investors pool their money together to buy stocks, bonds, and other securities 

• Diversification
• Mutual Funds
• Pool Party
• Mutual Diversification Portfolio

This is considered an IOU and the higher the interest rate on this, the more risky it is

• Bond
• T-bill
• Money market
• Stocks

Which of the following is a way to start investing?

• Purchase stocks on your own

• Pool money into a mutual fund managed by an advisor

• Purchase part of an index fund

• Hire a financial advisor to make a plan for you

• All options are correct

Why is compound interest more advantageous than simple interest?

• It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
• Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
• Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
• In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.