Investing 101

A stock is a share of ownership in a company

• True

• False

What is an example of an investment?

• savings

• stocks

• cash

• none

A loan to a company or government is called...

• saving

• stock

• bond

• index funds

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

• Dividend

• Bond

• Share

• Stock

The owner of a companies shares.

• Businessman

• Bond master

• Broker

• Shareholder

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

• Profit

• Bonds

• Dividends

• Cash back

A place where all transactions of buying/selling stock/shares issued by a company

• Stock Exchange

• Index

• Stock Market

• CD

Piece of ownership in a company, mutual fund or other investment

• Share/stock

• 401K

• Bond

Diversification is good because:

• It focuses investments on a single stock to take advantage of growth potential

• Mutual funds have higher fees than individual stocks

• Interest rates rise and fall

• It spreads the risk of investment

What are the differences between stocks and bonds?

• They are both investments.

• A stock is what corn grows on, and a bond gets you out of jail.

• Stock represents ownership, and bonds represents your word.

• A stock represents ownership, and bonds represents a loan.