Investment Basics: Diversifying Your Portfolio in the Stock Market
Interactive Video
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Business
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1st - 6th Grade
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Easy
Wayground Content
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7 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one reason people might consult a financial planner?
To plan a vacation
To figure out the best way to manage their money
To buy a new car
To learn how to cook
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is the stock market considered a good strategy for building wealth?
It guarantees immediate profits
It requires no initial investment
It can grow money over time with minimal effort
It is risk-free
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key strategy to minimize risk when investing in stocks?
Only investing in new companies
Investing all money in one company
Investing in a variety of companies
Avoiding the stock market entirely
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an ETF?
A financial planner's advice
A fund that buys a section of the market
A single company's stock
A type of savings account
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does a mutual fund benefit an investor?
It requires no initial investment
It is managed by a company to reduce the investor's burden
It allows the investor to manage hundreds of stocks individually
It guarantees high returns
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the advantage of an index fund?
It tracks a single company's performance
It allows investment in a broad market index like the S&P 500
It requires no fees
It is only for wealthy investors
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What should beginners look for when starting to invest?
A service that requires a large initial investment
A service that charges high fees
A service that allows small initial investments
A service that only offers mutual funds
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