New PFLE unit 2 Flash card review

Front

What is a stock?

Back

Ownership share in a company

Front

Highest returns investment option

Back

Stocks

Front

What is a bond?

Back

A loan to a company

Front

Lowest risk investment

Back

Bank account

Front

Diversification in investments

Back

Spreading investments across assets

Front

Benefit of a bank account

Back

FDIC insurance

Front

Fixed interest payments

Back

Bonds

Front

Downside of investing in stocks

Back

Market volatility

Front

Advantage of bonds

Back

Predictable income stream

Front

Investing vs. Savings Account

Back

Investing builds retirement wealth; saving is for short-term needs.