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What is the primary reason to issue stock?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
Why might a town decide to issue bonds?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
When it comes to investing, what is the typical relationship between risk and return?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
________ are typically comprised of a mix of ________ and ________
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
What are dividends?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
Which best describes the difference between stocks and bonds?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
When you buy a ____ , you are loaning money to an organization.
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
How can investors receive compounding returns?
By investing their earnings back into their original investment
A distribution of a small percentage of profits to shareholders.
To help save money for their residents.
Bond
Stocks allow investors to own a portion of the company; bonds are loans to the company
The greater the potential risk, the greater the potential return
Mutual funds; stocks; bonds
To help investors earn a higher rate of return
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