InvestingReview

Front

True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.

Back

False

Front

What is a diversified portfolio desirable for?

Back

It decreases risk.

Front

What is the face value of a bond called?

Back

Par Value

Front

What is the term for putting regular amounts of money into an investment account at specific time intervals?

Back

Dollar cost averaging

Front

What is a retirement account for you that is not sponsored by an employer?

Back

IRA

Front

What is the principle of diversification in investing?

Back

Spreading investments across various assets to reduce risk.

Front

What does the term 'principal' refer to in the context of bonds?

Back

The original sum of money borrowed or invested.

Front

What is 'compound interest'?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the difference between a 401K and an IRA?

Back

A 401K is employer-sponsored, while an IRA is an individual retirement account.

Front

What does 'inflation' mean in the context of investing?

Back

The rate at which the general level of prices for goods and services is rising.