Introduction to Investing

This type of investment is sold in shares and represents ownership in a single company. 

• Stock
• Bond
• Mutual Fund
• 401k

This type of investment is a a loan for which an investor is paid back interest as well as their initial investment. 

• Mutual Fund

• Stock
• Bond

• 401k

Many investors have a financial portfolio, or collection of investments, which is a way to: 

• Guarantee Profits

• Manage risk

• Avoid taxes
• Offset inflation loss

The profits from investments are called capital gains. Capital gains are subject to taxes based on whether they are short or long-term gains. 

• True
• False

This type of investment is for retirement, and offers tax savings at the time of investment

• Stock

• Mutual Fund
• Cryptocurrency
• 401(k)

This type of investment involves buying a part of a company's future profits in the form of a digital asset.

• Cryptocurrency

• 401(k)

• Stock

• Mutual Fund

This is a strategy used by investors to spread their investments across various assets to reduce risk.

• Consolidation

• Diversification

• Speculation

• Hedging