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Which of the following accurately describes a difference between an individual bond compared to a bond fund? Options: A bond pays you dividends while a bond fund pays you regular interest, A bond guarantees you a higher rate of return than a bond fund, A bond is issued by a company while bond funds only invest in government bonds, A bond is considered to be a less diversified investment than a bond fund

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A bond is considered to be a less diversified investment than a bond fund

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Why is diversification a recommended investment strategy?

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Diversifying your portfolio helps reduce risk

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An actively managed mutual fund…

Back

Generally has higher fees than an index fund

Front

Investing in cryptocurrency is generally seen as being _____ risky than traditional investments like bonds and funds.

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More

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This is a type of investment you can purchase that represents ownership of a part of a corporation. Units of this are called "shares."

Back

Stock

Front

This is a type of investment you can purchase that represents part ownership of a corporation, and you get regular interest payments while you own it. Units of this are called "shares."

Back

Dividend Stock

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This is a type of investment that acts like an IOU. For example, you pay $1000 to buy one, you get $50 a year (like a dividend) until it reaches maturity (agreed upon length of borrowing time), then get your $1000 back.

Back

Bond

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A type of investment consisting of a bundle of stocks, bonds, or other securities. The investment is already diversified.

Back

Index Fund, Mutual Fund, Exchange Traded Fund (ETF)

Front

Which is mainly used for short term goals, saving or investing?

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Saving