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FL TEST 2

QuestionAnswer
A _______ represents part ownership of a company. stock
____ stock allows you to vote at shareholder meetings. Common
Stock is mostly bought and sold in a _______. Stock exchange
How can investors make profits? Stocks has to grow and then you have to sell it. / Dividends given to you from the company.
What are factors that affect the price of stock? Supply and demand / public opinion / how well the company does
What is a bond and why do people buy them? Buying a bond gives the company a loan / Safe investment / you get dividends and interests
A _______ invests in companies based on the stock price and is worried about the short term. trader
When _____ increases, the purchasing power of the dollar decreases. inflation
Why are mutual funds a good investment? Automatically diversified / A professional helps you make / You don't have to watch the market everyday / You get a good return.
You should practice _______ or invest in a variety of assets to minimize risk. diversification
A _______ is when a company pays investors part of its profit to encourage future investors to invest in their company. dividend
An _______ researches companies and buys stocks based on a company's history in order to invest for the long term. investor
______ apps allow you to invest small amounts of money from purchases and other transactions. Spare change
Created by: Last Weeks
 

 



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