Investment Types

Front

What is a share in the context of the stock market?

Back

A unit of ownership in a company

Front

If you buy a stock in Sony, what do you own?

Back

A percentage of Sony's ownership

Front

What happens to the stock value when the company suffers a loss?

Back

The stock value decreases

Front

If you bought a share of Sony at $35 and the stock goes up to $45, how much have you made?

Back

$10

Front

What does a Stock Market Index provide to investors?

Back

A snapshot of how the markets are performing

Front

What is a Certificate of Deposit best described as? Options: A) A high-risk, high-reward investment, B) A document proving ownership of a bond, C) A low-risk, low-reward investment where money is loaned to a financial institution, D) A type of stock in a company

Back

A low-risk, low-reward investment where money is loaned to a financial institution

Front

What does a financial institution promise to do in exchange for your money in a Certificate of Deposit?

Back

Pay you back with interest ranging from 3% to 7%

Front

Can you withdraw your money from a Certificate of Deposit before the term is up?

Back

No, you cannot withdraw it until the term is up.

Front

What are stocks considered as a type of investment?

Back

Investments in a single company

Front

On what are returns from stocks based? Options: Based on market speculation, Based on fixed interest rates, Based solely on how the company performs, Based on a fixed yearly dividend

Back

Based solely on how the company performs