Stocks
This term refers to a share of ownership in a company that can increase or decrease in value.
What are Bonds?
A security that obligates the issuer to pay the holder a debt.
What is a Certificate of Deposit
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that locks your money for a fixed term, earning a fixed interest rate.
What is a savings account?
A savings account is a deposit account offered by banks or credit unions that allows you to safely store money while earning interest on the balance.
What is a mutual fund?
A mutual fund is an investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.
What is the risk in stocks?(Low,medium, or High)
HIGH
What are bonds vs stocks?
Debt securities (bonds) offer fixed payments and no ownership stake, while equity securities (stocks) provide ownership but come with higher risk and no guaranteed returns
How long are typical CD terms?
CD terms typically range from a few months to 5 years
How does a savings account earn interest?
Savings accounts earn interest at a fixed or variable rate, which is compounded daily, monthly, or annually, depending on the bank’s terms.
What are the main types of mutual funds?
(stocks), bond funds (fixed income), money market funds (short-term debt)
How might global events impact stock prices?
stock prices to fluctuate due to changes in investor confidence and economic stability.
There are five main types of bonds
Treasury, savings, agency, municipal, and corporate
Can you withdraw money from a CD before it matures?
Yes
Can you withdraw money from a savings account at any time?
Yes, savings accounts offer flexibility for withdrawals, though some may limit the number of transactions per month or charge fees for excessive withdrawals.
Can the value of a mutual fund go down?
Yes, the value of a mutual fund can decrease due to market fluctuations
what do you gain when putting stocks into a business?
When you buy this, you gain partial ownership in a company, entitling you to a share of its profits and voting rights in some cases.
Do bonds carry risk?
YES
Are CDs insured?
Yes, CDs offered by banks are insured up to $250,000 per depositor per institution by the FDIC
Does a savings account have a limit?
Yes some might have a limit of transactions or withdraws per month
Are mutual fund investments risky?
Yes, mutual funds carry varying levels of risk depending on the type of fund.
What is stock in simple terms?
a share in the ownership of a company, including a claim on the company's earnings and assets
Who issues bonds?
Governments, corporations and municipalities
What is the difference between a CD and a savings account?
CDs typically offer higher interest rates than savings accounts
Are savings accounts insured?
Yes, savings accounts in banks are insured by the FDIC up to $250,000 per depositor
What’s the maximum investment
$5000