Reasons & Financing Investments
What is investing?
Spending money now to gain a profitable return in the future.
What is a share?
Part ownership of a company.
What does risk mean in investing?
The chance of losing money.
What is ethical investing?
Investing according to your values and beliefs.
What does ASIC stand for?
Australian Securities and Investments Commission.
Name two groups that commonly invest.
Individuals and businesses.
What is superannuation?
Retirement savings contributed by employers and employees.
Which is usually riskier: shares or savings account?
Shares
Would animal testing be an ethical concern for some investors?
Yes
True or False: ASIC is a bank.
False
What are the two main ways to finance an investment?
Saving and borrowing.
What is a long-term investment?
Over 7 years
Which is usually safer: term deposit or cryptocurrency?
term deposit
What is positive screening?
Choosing companies with desirable practices.
Which financial institution is owned by its members?
What is one advantage of saving before investing?
No interest repayments.
What is an investment portfolio?
All the investments a person owns.
Complete the rule:
"Greater risk usually means greater ______."
return
Give one example of an industry many ethical investors avoid.
Tobacco, gambling, alcohol, weapons, etc.
What is a financial adviser?
A person who gives advice about money and investments.
What is the difference between a fixed and variable interest rate?
Fixed stays the same; variable changes with market conditions.
Which investment option is considered a very high-risk digital currency?
Cryptocurrency
What is diversification?
Spreading money across different investments to reduce risk.
Why do some investors choose ethical investments even if returns may be lower?
Because they want their money to support causes they believe in.
What is the main difference between a bank and a credit union?
Banks aim to maximise profit, while credit unions focus on member wellbeing.