Finance Unbox-ED ($) - Grade 3-5 - Session 030 - Assessment 8

Diversification means that instead of making only one investment you make multiple investments

• True
• False

Diversification is important as it reduces risk

• True
• False

One can never get benefits of diversification without investing in multiple asset classes

• True
• False

Investments in start-ups and fortune 500 companies are examples of how one can make multiple investments within an asset class such as equity investments and still get diversification benefits

• True
• False

One can get benefits of diversification by investing across different countries

• True
• False

Stock exchange is a place where people can buy and sell shares of companies

• True
• False

Buying and selling of shares on the stock exchange is also called trading in shares

• True
• False

Small portion of the trades now happen over the internet i.e. electronic trades

• True
• False

Shares we purchase are stored in an electronic form in something called a demat account

• True
• False

Companies need to do a lot of paperwork and compliances and get listed on an exchange

• True
• False