Which is a reason why people invest in the stock market?
whether or not deposits can be made online the expected rate of return on your investment how risky the investment is Question 4 30 seconds Q. What might be one reason why a stock becomes more valuable over time? answer choices the industry is growing the company is well-managed there is a lot of demand for the product all of these Question 5
Why do stocks increase in value over time?
Feb 28, 2018 · Stocks are one of the high favorites when it comes to investments, because though they are quite risky, they tend to become extremely valuable over time. It can be said that the reason for this is because the industries that …
How many stocks does a well-diversified portfolio need?
Question 2. SURVEY. 30 seconds. Q. Select the answer that best describes what an opportunity cost is: answer choices. The amount of money you put into savings each year. The trade-off of making one choice and giving up a different choice. The amount of money a business makes every year from sales.
Are cash equivalents considered relatively risky compared to stocks?
Investing is a guaranteed way to make money. Historically, long-term returns of the stock market have been negative. False Historically, long-term returns of the stock market have been positive. True In the past 90 years, the stock market has had …
Why might a town decide to issue bonds?
Why might a town decide to issue bonds? … Stocks allow investors to own a portion of the company; bonds are loans to the company.
How can investors receive compounding returns?
When the value of a stock grows over time, an investor sees the potential to earn compound interest if those profits are reinvested. With cash dividend payments, compound returns are not automatic, as they are paid out in cash but an investor can add the payouts back in in order to potentially earn additional returns.
Which would be considered the highest risk investment type?
Stocks, bonds, and mutual funds are the most common investment products. All have higher risks and potentially higher returns than savings products. Over many decades, the investment that has provided the highest average rate of return has been stocks.
What is a stock Everfi?
Someone who holds stock in a company. Bonds. A certificate issued by a government or private company which promises to pay back with interest the money borrowed from the buyer of the certificate: The city issued bonds to raise money for putting in new sewers.
Why might an investor want to invest in the stock market Everfi?
Why might an investor want to invest in the stock market? Investing in companies through the stock market offers a chance to share in their profits. & Investing in the stock market usually offers a higher return than interest earned on a savings account.
What happens when a bond becomes due?
What happens when a bond becomes due? The issuer will pay you back, plus interest. … A bond typically pays a fixed, predictable amount of interest each year.
Does an ETF compound?
ETFs are daily compounding, but we describe funds with yearly numbers to keep things averaged. So if on day 1 your funds go up 10%, and on day 2 they go up to 10% again, you’ll see a compounded 21% gain instead of a simple 20% gain.
