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WorksheetsBasics of Investing
Total questions: 10
Worksheet time: 10mins
When you buy stock, you are actually buying a piece of the company and becoming part owner
True
False
Federal Government Bonds are essentially considered risk-free
True
False
You may withdraw your money from a CD before all of the time has passed
True
False
Getting a "return" on an investment is always a good thing
True
False
Investing presents a great risk because a strong return is not always guaranteed
True
False
When it comes to buying stocks, the goal is to...
Be patient! Wait for a stock price to double before you invest
Diversify! Buy a lot of high risk stocks
Do your research! Follow all of the advice of the professionals
Buy low! Hold the stock for a time, then sell it for more than you paid
A ____ pools money from many investors for the purpose of investing in stocks, bonds, and other investments
Stock Market
Mutual Fund
Federal Government Bod
Certificate of Deposit (CD)
No matter what anyone tells you… there is no way of knowing with absolute certainty whether buying stock in a company will result in a positive return or a negative return
True
False
Real Estate is an investment because you can... (select all that apply)
Buy land and sell it for more than you paid
Shorten maturity date and increase interest on income tax
Buy a house and sell if for more than you paid
Buy an apartment and rent the space to someone else
Apply for a mortgage and pay an IOU with bonds
With a CD, the _____ promises to pay you a fixed amount of interest for a fixed amount of money during a fixed amount of time
Federal Government
bank
corporation
mutual fund
