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7.7 #8 Q individual brokerage account article questions

Total questions: 12

Worksheet time: 2hrs 0mins

Name
Class
Date
1.
a)

You can use your savings account to directly invest in stocks

b)

You can use your brokerage account to directly invest in stocks

c)

Your brokerage account is the same as an IRA

d)

Your brokerage account is the same as a 401(k)

2.

https://docs.google.com/document/d/1unJmoCjrgd_qbZ2iaqy6gfbR9L4PiluGIzKZZKz8XzU/edit?usp=sharing

or
https://www.nerdwallet.com/article/investing/what-is-how-to-open-brokerage-account

A recent college graduate realized she has some extra money in her budget and would like a way to invest it while also having access to it should she need cash.

a)

retirement

b)

brokerage

3.

https://docs.google.com/document/d/1unJmoCjrgd_qbZ2iaqy6gfbR9L4PiluGIzKZZKz8XzU/edit?usp=sharing

or
https://www.nerdwallet.com/article/investing/what-is-how-to-open-brokerage-account
Remi contributes as much as he can to his employee-sponsored 401k and personal IRA. He would like to make more investments in individual companies to try and increase his long-term earnings.

a)

retirement

b)

brokerage

4.
a)

retirement account

b)

brokerage account

5.
a)

retirement account

b)

brokerage account

6.
a)

An managed brokerage account allows you to make investment decisions on your own

b)

An online brokerage account allows you to make investment decisions on your own

c)

An managed brokerage account has a human or robot fund manager

d)

An online brokerage account does not allow you to make decisions and has a robot fund manager

7.
a)

Must have a checking account

b)

18+ years old

c)

Must have a parent signature under 25

d)

Must have a cosigner

8.

Do you think you will open a brokerage account at some point?

a)

Yes

b)

No

c)

Not sure

9.

Do you know what a 401(k) is?

4 lines
10.
What are the advantages of investing in a mutual fund, rather than an individual stock?
a)
A mutual fund is actively managed, resulting in lower overall fees
b)
A mutual fund is diversified, so your investment is lower risk
c)
A mutual fund has a target date to be sold, so you can pay less attention to changes in the market
d)
A mutual fund always pays out higher dividends than an individual stock
11.
All of the following are true about a passively managed fund EXCEPT…
a)
Fees for a passively managed fund are typically lower than those for an actively managed fund
b)
Passively managed funds are generally seen as low risk investments
c)
A passively managed fund guarantees the average return of the securities it includes
d)
Passively managed funds are managed by a fund manager
12.
Why might a target date fund be a good option for someone who wants a hands-off approach to investing?
a)
Target date funds automatically adjust your asset allocation as you get to retirement.
b)
Target date funds are actively managed by a fund manager.
c)
Target date funds only invest in low-risk bonds.
d)
Target date funds offer low fees while also promising to outperform the market.