Consumer Ed. Unit 4 - Saving and Investing Flashcard

Front

What is a stock?

Back

a small portion of ownership in a company

Front

What is an IRA?

Back

Individual Retirement Account

Front

Which is an example of a commodity? Options: Clothing, Technology, Coins & stamps, Farm products

Back

Farm products

Front

What does rate of return in investments tell you?

Back

Percentage of profit or loss

Front

Why is liquidity important in investing and saving?

Back

Access to money

Front

Which is NOT sound financial advice? Options: Buy only technology stocks - It is the future!, Don't take money out of your retirement account until age 59.5 or later., "Diversify" your money into a variety of investments, Start early

Back

Buy only technology stocks - It is the future!

Front

Stockbroker?

Back

Financial advisors that people may buy and sell most financial products.

Front

What is the primary reason for a company to issue stock?

Back

To raise money to grow the company

Front

What is the main benefit of diversifying your investment portfolio?

Back

Minimizing risk

Front

What is the purpose of a financial advisor?

Back

To manage investments and offer financial planning