Investing Basics
What is investing?
Putting money somewhere it can grow over time.
What is a stock?
A small piece of ownership in a company.
What is a bond?
A loan you give that gets paid back with interest.
What does volatility describe?
How much something goes up or down.
What is your biggest advantage when you invest young?
Time.
According to the presentation, is there a perfect investment?
No, there is no perfect investment.
Which type of stock is generally more stable?
Blue chip stocks.
What investment is similar to a mutual fund but trades like a stock?
An ETF.
Why is diversification important?
It helps reduce risk.
According to the key takeaways, when should you start investing?
As young as possible.
What type of businesses sell stocks to the public?
Publicly traded companies.
What happens to stock prices when more people are buying?
Prices increase.
Why might bonds not grow much over time?
Inflation.
Volatility is another word for what?
Risk.
What type of investment includes gold and silver?
Commodities.
Why do people invest their money instead of just saving it?
To grow their money over time.
What are penny stocks known for: low risk or high risk?
High risk.
What is a mutual fund?
A collection of many stocks.
What does diversification mean?
Not putting all your money in one place.
Commodities often help protect against what?
Inflation.
What happens when you buy a stock?
You become a partial owner of a company.
What causes stock prices to change?
News, company performance, and the economy.
Are bonds considered high risk or low risk investments?
Low risk.
Higher volatility usually means what?
Bigger gains or bigger losses.
True or False: Small investments can grow into a lot of money over time.
True.