Investment for Beginners

What type of investor aims big, but plays it risky?

• Moderate

• Agressive

• Conservative

• Index fund investor

Why should you diversify your stocks?

• To impress other investors

• For more volatility

• Reduce Risks/ increase potential earnings

• To make the market more predictable

What is a stock?

• A type of bond

• Ownership of a company

• A loan to the government

• A type of savings account

What is a broker?

• A person who helps investors buy and sell stocks

• A type of stock that pays high dividends

• A company that produces financial news

• A person who manages real estate investments

What does 'dollar-cost averaging' involve?

• Investing all your money at once in a high-risk stock

• Buying stocks only during market downturns

• Spreading out investments so price paid is less affected by market timing

• Timing the market to buy low and sell high

What is a market?

• A place where buyers and sellers exchange goods and services

• A type of currency in trading

• An environment where stocks are sold

• Government institution that sets rules for business

What is risk tolerance?

• Ability to handle financial loss

• The amount of uncertainty accepted by an investor

• Minimum return on an investment

• The total value of a stock

Finish the quote: "Investing should be more like...

• "...predicting the weather in a hurricane."

• "....playing high stakes poker."

• "...watching paint dry or watching grass grow."

• "...riding a rollercoaster in an amusement park."