Investing Basics
This is interest calculated on both the money you've invested and the accumulated interest from previous periods.
What is compound interest?
What is a stock?
When you purchase this from a company, you are lending the company money which it promises to repay with interest by a certain date.
What is a bond?
This form of investing has a human fund manager
What is Active Investing?
Naomi would like to invest for retirement but doesn’t want to worry about paying taxes every year. This is the type of account she should invest in.
What is a retirement account?
The best way to maximize your investment growth is this.
The price of a stock that is listed on an exchange.
What is a stock quote?
Investors can purchase shares in this actively managed _____________, which pools money from many people to buy a diversified portfolio of stocks, bonds, and other securities.
What is a mutual fund?
Savings is meant for this type of goal.
What is short-term goals.
Starting to save for retirement when you're young is powerful because it gives your money more time to do this.
What is grow?
This strategy is use to reduce risk in an investment portfolio by investing in a variety of assets like stocks, bonds, funds and more.
What is diversification?
A company may choose to pay part of earned profits back to its shareholders in this form.
What is a dividend?
This invests in a collection of different types of bonds and provides more diversification
What is a bond fun?
This is the investment mindset that focuses on long-term growth rather than quick profits.
What is a long-term strategy?
A government program that pools contributions from current workers to then provide retirement support benefits to those who are eligible.
What is social security?
This is an investment account that you can open that allows you to purchase investments such as stocks, bonds, mutual funds and more.
What is a brokerage account?
When more investors are buying stocks, which causes stock values to increase, we refer to this type of market.
What is a bull market?
The risk that a company or government is unable to pay back the investor.
What is default risk?
This popular high risk trend should NOT be considered an investment strategy.
What is gambling?
You can have both this type of retirement account and a retirement account from your employer, like a 401(k).
What is an IRA?
This make the purchasing power of the dollar decrease which impacts how much you can buy in goods and services.
What is inflation?
A collection of investments and assets held by an investor.
What is a portfolio?
A bond will become more valuable to buyers when the interest rate does this.
Financial advisors have said that you should pay off this type of debt before you begin investing.
What is high interest?
This type of retirement account is offered by many employers, often with a matching contribution
What is a 401(k)?