Investing Part 1

What can be considered an investment?

• Using money to start a business

• Purchasing real estate

• Purchasing stocks

• Making good grades

Investing is the act of allocating resources with the expectation of generating an income, profit, or gains.

• True

• False

What are cash examples of Investing?

• Savings Account

• Certificate of Deposit

• Money Market Account

• Checking Account

What are bond examples of investing?

• Treasury

• Domestic Corporations

• U.S. Government

• U.S. Corporate

What are the types of Investments?

• Bonds

• Cash Equivalent

• Brokerage

• Stocks

• Capital

_______ is a security that represents the ownership of a fraction of the issuing corporation. You are considered a shareholder if you have this in a company.

• Bond

• Stock

• Cash Equivalent

• Broker

Stocks are also known as _______.

• Capital

• Bond

• Shareholder

• Equity

Common stock does not allow you to have the right to vote on issues affecting the company, while Preferred Stock does allow you to vote on issues affecting the company.

• True

• False

_____ is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

• Bond

• Stock

• Investment

• Savings Account

The coupon rate attached to a bond is also known as the interest rate.

• True

• False