Stocks – Basic
Owning a stock means this.
What is owning part of a company?
One possible reward of owning stocks.
What is higher potential returns?
A bond is best described as this.
What is a loan to a company or government?
Someone might choose bonds because they are generally this.
What are safer?
This type of investor prefers lower risk and steady income.
What is a conservative investor?
When you buy stock, you become this in the company.
What is a partial owner (shareholder)?
One major risk of owning stocks.
What is losing money?
The amount you receive when a bond matures.
What is face value?
Investors who want predictable income often choose this investment.
What are bonds?
This type of investor is more comfortable with risk.
What is an aggressive investor?
Companies sell stocks mainly to do this.
What is raise money for growth or expansion?
Payments some companies make to stockholders.
What are dividends?
The percentage paid to you each year on a bond.
What is the interest rate (coupon)?
Investors willing to take more risk for growth often choose this.
What are stocks?
A mix of stocks and bonds is called this.
What is a balanced portfolio?
Stocks represent these in a company.
What are ownership shares?
Stock prices go up or down based on this and market conditions.
What is company performance?
When a bond expires and your money is returned.
What is maturity?
A key factor to consider when choosing investments.
What is risk tolerance?
Why investors diversify their portfolios.
What is to reduce risk?
This statement is TRUE about stocks:
A) You loan money
B) You are guaranteed profits
C) You own company debt
D) You own part of a company
What is D) You own part of a company?
A major event where stock prices drop sharply.
What is a stock market crash?
Owning a bond is most like doing this.
What is lending money and earning interest?
A life situation where bonds might make more sense than stocks.
What is retirement or nearing retirement?
An investor who would most likely prefer bonds.
What is a retiree or risk-averse investor?