Keys to Investing Review

Wise to focus on slow and steady growth of your money, so you know it’s safe and will be there when you need it. Put money into a savings account.

• Short-term Goals

• Long-term Goals

You can take more risk with your money if you want to see bigger growth over a longer period of time since you’ll have time to recover any short-term losses.

• Short-term Goals

• Long-term Goals

Means that the money you have now is worth more than the same amount of money in the future because it has the potential to grow. By earning interest or capital appreciation on your $100 today, you would end up with more than $100 in one year.

• Long-Term Goal

• Short-Term Goal

• Time Value of Money

Short-term investments that are considered liquid, which means investors can exchange them for money quickly without a big change in value. Usually can get your money back in 3 months or less.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

Fixed income investment, which means you get payments on a regular schedule. You’re loaning money to a corporation or the government in return for interest.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

Shares of ownership in a company. You own a percentage of the company itself and may get dividends.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

When building your investment portfolio, you can use a mix of stocks, bonds, and cash equivalents. The amount of each type of asset in a portfolio is called the.......

• Asset Allocation

• Portfolio Mix

• Asset Mix

• Portfolio Alliance

Which of the following is NOT one of the key factors to help you determine your asset allocation?

• Risk Tolerance

• Time Horizon

• What your family/friends say

• Personal Financial Health

Market capitalization is how much all of a company's stock is worth. A company with a large market cap. will be....

• Higher/faster Growth

• Lower/slower growth

• Smaller

• A newer company

Market capitalization is how much all of a company's stock is worth. A company with a small market cap. will likely be...

• Higher/faster Growth

• Lower/slower growth

• A large and well established company

• Less risky than a large cap. company