What does the information demonstrate about Alex’s investments?

What does the information demonstrate about Alex’s investments? He most likely would have benefited by diversifying. … Why is it risky to invest in a commodity? The commodity’s price might drop significantly very quickly.

What does information demonstrate about Gale’s investments?

What does the information demonstrate about Gale’s investments? A. If she had purchased only the stock and had not diversified her investments, she would have lost money.

What is the main purpose of investing your money?

Investing is a way to potentially increase the amount of money you have. The goal is to buy financial products, also called investments, and hopefully sell them at a higher price than what you initially paid. Investments are things like stocks, bonds, mutual funds and annuities.

Why is it important to know about investments?

Investing is essential to good money management because it ensures both present and future financial security. Not only do you end up with more money in the bank, but you also end up with another income stream. Investing is the only way to achieve both growing wealth and passive income.

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How is a 401 K different from an individual retirement account IRA quizlet?

In what way does a 401(k) differ from an individual retirement account (IRA)? A 401(k) is created through an individual’s employer. How is a savings account most useful? Which are examples of high-risk investments?

Which is an example of a high risk investment?

Penny stocks are considered high risk investment due to lack of liquidity and risk of large fluctuations in value owing to purchase or sell by larger investors. … High Yield Bonds: This type of bonds usually offer outrageous returns in exchange for the potential risk of losing the principal itself.

Which best describes what generally occurs in a financial market?

Which best describes what generally occurs in financial markets? Debt and loans are traded.

How does investing in a company work?

Investment companies are categorized into three types: closed-end funds, mutual funds (or open-end funds) and unit investment trusts (UITs). Each of these three investment companies must register under the Securities Act of 1933 and the Investment Company Act of 1940.

What do you know about investment?

An investment is essentially an asset that is created with the intention of allowing money to grow. … One, if you invest in a saleable asset, you may earn income by way of profit. Second, if Investment is made in a return generating plan, then you will earn an income via accumulation of gains.

Which investments advice would gale most likely give to Alex?

Which investment advice would Gale most likely give to Alex? Spread your investments in several different areas. How is a 401k different from an individual retirement account (IRA)?

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In what way does a 401 K differ from an IRA?

Even though both accounts are retirement savings vehicles, a 401(k) is a type of employer-sponsored plan with its own set of rules. A traditional IRA, on the other hand, is an account that the owner establishes without the employer being involved.

In what way does a 401 K differ from an individual retirement account RA?

The primary difference between an IRA and a 401(k) is that a 401(k) plan must be established by an employer. … For 401(k) plans that have employees, the employer has the option of making contributions to the employees’ account. An IRA, on the other hand, is an individual account, not tied to an employer.