Types of Investments

Question 1

Index

Answer 1

an equity investment that follows a group of stocks with similar characteristics

Question 2

Bond

Answer 2

an equity investment that follows a group of stocks with similar characteristics

Question 3

CD

Answer 3

an equity investment that follows a group of stocks with similar characteristics

Question 4

T Bill

Answer 4

an equity investment that follows a group of stocks with similar characteristics

Question 5

Stock

Answer 5

an equity investment where a consumer obtains direct ownership of a single company through the purchase of a share

Question 6

Mutual Fund

Answer 6

an equity investment that allows lots of investors to pool their money to purchase shares in a diversified portfolio, usually run by a manager or managers

Question 7

Target Date Fund

Answer 7

an equity investment that allows lots of investors to pool their money to purchase shares in a diversified portfolio, usually run by a manager or managers

Question 8

ETFs (Exchange Traded Funds)

Answer 8

Investment funds traded on stock exchange, growth through dividends and interests, different from mutual funds because cheaper and low fees.