Investing

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Why is compound interest more beneficial than simple interest?

Back

Your money grows faster when it is compounded.

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

Which of the following is TRUE about a stock split?

1. Stock splits impact the overall value of a company

,

1. Stock splits decrease the number of shares you own

,

1. Stock splits indicate that a company is doing poorly

,

1. Stock splits make a stock more accessible to a greater number of investors

Back

Stock splits make a stock more accessible to a greater number of investors

Front

If interest rates rise, what will typically happen to bond prices?

Back

Fall

Front

A _____ is a loan given to an organization while a _______ is partial ownership in the company.

Back

bond, stock

Front

What's the main difference between a Roth IRA and a Traditional IRA?

Back

Roth IRAs have you pay taxes upfront.

Front

Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?

Back

Profit of $25

Front

What is the main difference between investors and traders?

Back

Investors focus on long-term growth while traders aim for short-term gains.