Investing Process

Working with a broker or brokerage firm is (a)   .

• only available through an app.

• limited and never includes asset allocation guidance.

• recommended but optional for making investments.

• needed to buy or sell assets in the market.

Investing in mid-cap and large-cap companies means (a)   .

• the companies are typically newer.

• anticipating steadier growth over time.

• taking a higher risk.

• strategizing for high growth potential.

Ben is interested in diversifying his portfolio. He wants to be able to easily manage many investment types at once, but does not want to pay high fees. Which investment type is best for Ben?

• Individual stocks and bonds

• Multiple cash equivalents

• Exchange Traded Fund (ETF)

• Mutual Fund

Your time horizon is (a)   .

• your ability to comfortably pay all your bills

• the same as your age.

• how comfortable you feel taking the risk of losing your money.

• how long you plan to keep your investments.

Parker is 21 years old, has weak financial stability, a long-time horizon, and a high risk tolerance. How should Parker invest?

• More stocks than bonds and cash equivalents

• More cash equivalents than bonds and stocks.

• More bonds than stocks and cash equivalents.

• Answer option 3

Shayna is running a startup business, volunteering on the weekends, and spending free time with her family and friends. She's interested in becoming a more active investor. Why would a full-service brokerage firm be her best choice

• Lacks time to make investment decisions.

• Needs convenient investing options.

• Prefers to work with an expert.

• Wants to pay low fees.