Investing Basics 19-24

What is the primary goal of investing?

• a) To grow wealth over time
  

• b) To spend all earnings immediately
  

• c) To avoid financial planning
  

• d) To lose money for tax benefits
  

Which of the following is considered a long-term investment?

• a) Stocks
  

• b) Lottery tickets

• c) Daily shopping expenses
  

• d) Eating out frequently
  

What is the main advantage of mutual funds?

• a) Professional management and diversification

• b) Guaranteed high returns
  

• c) No risk of losing money
  

• d) Instant withdrawal without any loss
  

Which factor should you consider before investing in stocks?

• a) The color of the company’s logo
  

• b) Popularity of the company name
  

• c) Company performance and market trends

• d) Random selection of stocks
  

What is an important rule for beginner investors?

• a) Invest everything in a single stock
  

• b) Avoid researching before investing
  

• c) Start with small investments and diversify
  

• d) Invest based on rumors