Investing Review

A mutual fund is

• The money left over when reinvested back into the company

• An account that guarantees a fixed rate of return

• An investment in a diversified group of stocks

• Exclusively for retirement account

Which would be considered the highest risk investment type?

• common stock

• mutual fund

• bond

• preferred stock

The relationship between risk and return can be stated as

• higher the risk indicates lower return

• higher risk indicates higher return

• no relationship exists between risk and return

• lower risk indicates higher return

What is a good strategy to help you save?

• First, spend money on all expenses then put what is remaining into savings.

• Tap into your savings on a regular basis to purchase small items, like chips/snacks.

• Pay yourself first - set aside money for savings each month.

• Keep your spending and saving money together in one account.

This type of stock pay the investor a fixed dividend

• common stock

• preferred stock

• growth stocks

• All types of stocks pay dividends

Nike, Disney and Walmart are examples of what type of stock?

• small stock

• growth stock

• blue chip stock

• shopping stocks

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy.

• Your money is insured when investing, it is not in savings.

• Investing has a guarenteed return, savings does not.

• Savings is for emergencies and goals, investing is for building long-term wealth.

How can you make money on stocks?

• Buy low and sell high

• buy high sell low

• holding the stock for less than 1 year

• holding the stock for at least 3 years.

How can you make money on stocks?

• dividends

• buy high sell low

• holding the stock for less than 1 year

• holding the stock for at least 3 years.

How can you make money in bonds?

• dividends

• interest

• holding the bond until maturity

• the company shares its earnings with you