Unit B Quiz Review

What is the benefit of starting to invest early?

• There is no benefit. It doesn't matter when you start.

• Starting to invest early allows time for compounding to work, helping your investment to grow.

• There are no taxes on earnings for the first 10 years.

• You are guaranteed to triple your investemnt.

These are loans that you give to organizations or companies.

• securities

• stocks

• bonds

• dividends

These allow you to have partial ownership of the company you invest in.

• bonds

• funds

• dividends

• stocks

Which is riskier: stocks or bonds?

• Bonds have a higher risk.

• Stocks are often more risky than bonds.

This is the is interest on the amount of money you have saved and on the interest you have already earned.

• Stock Interest

• Simple Interest

• Compound Interest

• Dividend Interest

How does investing compare to general savings accounts?

• They are generally the same thing.

• Investing involves much less risk, but lower returns.

• Savings accounts are high risk, but higher rates of return.

• Investing typically involves higher rates of return compared to general savings accounts at banks and other financial institutions.

What is diversification in investments?

• Diversification minimizes risk by having different investments in your portfolio.

• Diversification forces you to have small investments of many companies.

• Diversification increases your risk of loss by putting all your money in one company.

• Diversification means that you use multiple brokers and financial advisors to make investments.

How can you earn money from stocks?

• By selling them for less than you paid for them.

• By selling them at a higher price than you paid or by receiving dividends.

• You can only earn money from dividends.

• You can't earn money from stocks.

A _____ is when companies raise money by issuing shares of ownership through a stock exchange.

• Bear Market

• Bond

• IPO (Initial Public Offering)

• IRA

A _______ is a resource investors use to evaluate the performance of a stock or company, showing details like market cap, current share price, and historical performance.

• financial report
• stock exchange

• stock quote

• dividend