What Is Investing? Flashcards
1
Q
What is investing?
A
The process of allocating resources like money into a project or business with the hope that in the future it will generate profit
2
Q
What are the three most common kinds of investments?
A
Stocks, bonds, funds
3
Q
Describe stocks
A
When an investor puts a portion of resources into a company’s stock to become a financial company owner
4
Q
Describe bonds
A
When you buy a bond, you share an entity’s debt so you receive interest payments when the bond matures
5
Q
Describe funds
A
Investing in funds means spreading the odds of your investment bringing back a profit. Funds allow investors to invest in different things simultaneously
