Investing in Stocks

What is the first step to get started with investing in stocks?

• Define your tolerance for risk

• Decide on your investment goals

• Determine your investing style

• Choose your investment account

What is an important investment concept to understand?

• Diversification

• Risk tolerance

• Investment goals

• Investment style

Which type of account automatically invests for you based on your goals and risk tolerance?

• Retirement plan at work

• IRA or taxable account at a brokerage

• Robo-advisor account

• Full-service broker account

What is the benefit of diversifying your investments?

• Higher potential returns

• Lower risk

• Tax advantages

• Faster growth

What are the costs associated with trading stocks?

• Commissions and fees

• Mutual fund loads

• Management expense ratio

• Sales charges

Which type of broker offers a full range of traditional brokerage services?

• Discount broker

• Robo-advisor

• Full-service broker

• Online broker

What is the minimum deposit requirement for some financial institutions?

• $1,000

• $10,000

• $25,000

• No minimum deposit

What is the fee paid by shareholders of a mutual fund?

• Transaction fee

• Management expense ratio

• Sales charge

• Front-end load

Which type of account allows you to invest in various stock and bond mutual funds?

• Retirement plan at work

• IRA or taxable account at a brokerage

• Robo-advisor account

• Full-service broker account

What is the benefit of investing small amounts consistently over time in a mutual fund?

• Higher potential returns

• Lower risk

• Dollar cost averaging

• Tax advantages