6.5 Start INvesting

Instead of picking individual stocks, a better strategy is to invest in ________because it includes a mix of multiple stocks and helps you diversify.

When you invest in an index fund, own a part of hundreds of companies.

A _________________ is a person or firm that offers investment accounts.

When you purchase a _______, you own a piece of that company and are willing to make or lose money based on how the stock price changes.

Loans from investors to companies, the gov't, or other financial institutions that must be repaid with interest

If you're a minor, a guardian can open up an investment account for you and help you manage it.

After reaching the legal age in your state, usually between 18 to 21, you’ll become the owner of the custodial investment account.

Why should you start investing at a young age?