LT: Investment Firms (Make up)

What is the primary goal of investment firms?

• To grow clients' wealth over time

• To manage clients' daily expenses

• To provide loans to clients

• To offer insurance services

Which of the following is NOT a type of investment firm?

• Mutual Funds

• Hedge Funds

• Private Equity Firms

• Credit Unions

How do investment firms primarily earn money?

• Through management and performance fees

• By selling products to clients

• By charging high interest rates

• By offering free consultations

What is diversification in investment strategies?

• Spreading investments across different assets

• Investing all money in one asset

• Avoiding any risky investments

• Focusing only on stocks

What should be considered when choosing an investment firm?

• Reputation, fees, and services

• Location of the firm

• Number of employees

• Age of the firm

What role does research play in investment strategies?

• Analyzing market trends and company performance

• Ignoring market trends

• Focusing only on past performance

• Avoiding any analysis