When you purchase shares of a company in the market, who are you buying those shares from?
another shareholder
the bank
How do stocks and bonds differ?
Stocks are good for income while bonds are good for longterm
Stocks may help you protect your money from inflation
Stocks are loans you give out to corporations
Stocks are low risk while bonds are high risk.
If you invested $1,000 in Netflix 10 years ago, about how much would it be worth today?
about $5,000
about $500
over $26,000
about $10,000
What is our coping skill of the day?
How does buying shares in a company benefit an investor?
they don't benefit
can sell the shares for a higher price and make a profit
Stocks are riskier than bonds but have the potential to have higher returns.
FALSE
TRUE
Which of the following is TRUE about owning a share of stock?
Companies lose significant amounts of money
You have to return the share of the company you own
The value of a share is based on the number of investors
Owning a share means you own a percentage of the company.
How does selling shares on the stock exchange benefit companies?
it doesn't benefit them
they receive funds to further expand their company.
What does it mean to “diversify” your portfolio?
Pooling your money into one fund
Spreading risk by investing your money in a variety of funds
Investing all of your money into 1-2 funds
Putting your money in funds that come with high fees
Stocks: You buy a share of a company (you get ownership of a piece of that company).
TRUE
FALSE
As an investor, what is the risk involved in investing in companies on the stock exchange?
they're not at risk
because the price of stocks can also decrease