Planning Personal Finance - Marketable Investments

The following are important investment considerations

• Your investment time horizon

• Your costs

• Your risk appetite

• Your tax position

Which of these are investment asset classes?

• Mutual funds, cryptocurrencies, collectibles, and precious metals
• Stocks, bonds, real estate, commodities, and cash equivalents
• Savings accounts, certificates of deposit, money market accounts, and treasury bills
• Insurance policies, retirement accounts, annuities, and pensions

What are bonds?

• Bonds are financial instruments used to speculate on the future price of commodities.
• Bonds are physical certificates that represent ownership in a company or government.
• Bonds are debt securities issued by companies or governments to raise capital.
• Bonds are stocks issued by companies or governments to raise capital.

Which of this are examples of commodities in investment ?

• cars, clothes, electronics, furniture
• books, movies, music, art
• stocks, bonds, real estate, cryptocurrency
• gold, oil, wheat, coffee

What are preference shares?

• Preference shares are shares that give shareholders certain preferential rights.
• Preference shares are shares that give shareholders voting rights.
• Preference shares are shares that give shareholders the same rights as common shares.
• Preference shares are shares that give shareholders no rights.

What are warrants/options?

• Real estate
• Bonds
• Stocks
• Financial instruments

What are options in terms of financial markets

• Stocks
• Bonds
• Mutual funds
• Financial derivatives

What is the main difference between ordinary shares and preference shares?

• Ordinary shares have fixed dividend payments, while preference shares have variable dividend payments.
• Ordinary shares have higher dividend payouts than preference shares.
• Ordinary shares have equal voting rights as preference shares.
• Ordinary shares have voting rights, while preference shares do not have voting rights.

Which asset class is generally referred to as the riskiest?

• stocks
• bonds
• real estate
• commodities

What are some arguments against portfolio diversification?

• Overperforms the market

• Expensive

• Impossible in some illiquid market

• Effective risk management strategy