Front

Spreading your investments around to increase financial security

Back

Diversification

Front

Which of the following is the LEAST risky investment? corporate bonds, stocks, U.S. Savings bond, mutual funds

Back

U.S. Savings bond

Front

Ownership in a publicly traded corporation

Back

Stock

Front

A bond's interest rate is also called its

Back

coupon rate

Front

A dividend is a distribution of a portion of a company's earnings

Back

True

Front

The relationship between risk and return in investing can be stated as:

Back

higher risk indicates higher potential returns

Front

A diversified portfolio is desirable because it...

Back

Decreases risk by investing money in a variety of investment tools

Front

What is a stock?

Back

A share of ownership in a company.

Front

All of the following are ways to earn money as a stockholder EXCEPT: getting dividends, selling the stock at a higher value, stock splits, selling the stock at a lower value

Back

selling the stock at a lower value

Front

Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?

Back

A brokerage firm