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Read the article and choose the correct answer (A, B, C or D) for each question.
Financial Investing
Stocks, bonds, and other investments are ultra-useful financial tools that allow investors (or anyone who's willing to make educated, cash-backed financial decisions) to increase their worth and become part of today's fast-moving business landscape.
Stocks are pieces of ownership of publically traded companies that clients purchase with the hopes of turning a profit, and (ideally) after conducting much research as to a company's revenues, business model, and more. Stocks are purchased through the stock exchange, and specifically, through a stockbroker, brokerage firm, or licensed trading website.Shares of a company are always being bought and sold by individuals, and accordingly, there's never any delay in processing a transaction. A company's stock price will conceivably rise following positive reports and profit data, and as a result, individuals who purchased a stock at a lower price will benefit from this price increase (as the shares they bought will each be worth more). Some stocks also pay dividends, or small, scheduled payments, to clients.
Bonds are essentially pieces of debt purchased by clients in exchange for interest. Government bonds can be bought for set prices, and after they've matured, investors can claim more
money than they input initially: their benefit is obvious, and for the government, the perk of having liquid cash is significant. Corporate (company-issued) and municipal (state or
local-government-issued) bonds similarly provide short-term cash for the issuers and long-term boosts for investors. As was indicated, however, many bonds cannot be freely backed out of
(as stocks can), and investors who sell before maturation will be subjected to penalties of varying severity.
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Investing smartly in stocks and bonds is a great way to increase one's worth, plan for retirement, and play an active role in the financial landscape. However, bad investment may cause serious hurts to ones, particularly in the ever changing financial world as today. A poor investment decision almost always means that some or all monies allocated to the investment have been lost. The primary aim of the investment is, after all, to make money, and it follows that failure automatically can mean either loss of profits or even the capital itself. Therefore, being wise and cautious in selecting the right options for right investment are something you should note in your mind when thinking about financial investment.
1) Where are stocks bought and sold?A. Through stock exchanges, with the assistance of a licensed stockbroker, brokerage firm, and/or brokerage website
Local community centers
B. Through companies
C. Over the phone, through a 24/7 hotline
2) What is a bond?
A. A share of ownership in a publicly traded company B. Essentially the same thing as a stock
C. A piece of debt purchased and compensated for through interest paid to purchasers.
D. A publicly traded piece of a company
3) What is one key benefit of purchasing a bond?
A. Being able to show-off to friends and family members
B. Not having to worry about a company's performance, in relation to being paid . Being free to sell as is personally convenient, with no penalty
C D. Guaranteeing a fixed money in return
41 What is the main rosenn for omnhasizing the nood to ho wise and cautious when calarting investment ontions?
