Vocabulary
If you need access to your money quickly and easily, you want your money in an account with a high "this"
Liquidity
This word means you don't put all your eggs in one basket; you spread money across different companies and industries.
Diversity
According to the data, what was the most expensive price this stock reached in the last year?
87.62
In the world of finance, if you want the possibility of a very high return, you must be willing to accept...
higher level of risk
A group of these birds is known as a "flamboyance."
Flamingos
While a savings account prioritizes liquidity and principal protection, successful long-term investing relies on these two 'competing' forces: one that rewards the investor for taking on uncertainty, and one that allows small amounts of money to grow exponentially over a long time.
What are Risk and Compound Interest?
This is when you set aside money, usually for a purchase you plan to make within the next year or two.
Saving
This is the specific strategy of deciding how much of your total portfolio goes into stocks vs. bonds vs. cash.
Asset Allocation
If an investor wants to buy 10 shares of GM at the Open Price, how much will they pay?
$794
Which typically has a higher risk: A government bond or a brand-new technology stock?
Technology Stock
This is the only fruit that has its seeds on the outside rather than the inside.
Strawberry
The act of putting money into assets, like the stock market, with the goal of growing your wealth over many years.
Investing
Why is a mutual fund generally considered safer than owning a single stock?
It is instantly diversified
An investor bought GM stock at its 52-week low and sold it today at the Open Price. What is their profit per share?
$35.63
This is the term for the "extra" money you earn on an investment, often expressed as a percentage.
Return (or Rate of Return)
This North American country officially contains more natural lakes than the rest of the countries in the entire world combined.
Canada
This term describes the "uncertainty" or the chance that you might lose money on an investment.
Risk
Before listening to a "get rich quick" tip on TikTok, an investor should check the "this" of the source.
Credibility
Calculate the Rate of Return for the investor in the previous question.
Rate of Return % = [(Current Value – Initial Value) / Initial Value] x 100
81.4%
This is the risk that the general prices of goods will rise, making your cash worth less over time.
Inflation Risk
This is the only planet in our solar system to rotate clockwise on its axis.
Venus
Instead of just picking one company, you buy this "professionally managed" basket of different stocks and bonds.
Mutual fund
When an investor's main goal is to beat inflation and grow wealth, they usually buy this asset class.
Stocks
If GM pays a $1.00 dividend per share, how much total dividend income would you earn if you owned 150 shares?
$150.00
Explain why a "savings account" is not usually a good long-term investment for retirement.
The interest rate is usually too low to beat inflation or provide significant growth?
The year the first iPod was released.
2001