Investment Basics

 

http://www.abcnews.go.com/sections/business/InvestingBasics/investingbasics_subindex.html

Go to the above link, and at the bottom right of the page, under "interactives", click on the link for cash, stocks, bonds, mutual funds, etc. Then answer the following questions

 

1 Explain the difference between cash and stocks and bonds

 

2 Why are Money Market Accounts and Treasury Bills considered cash, but not Certificates of  Deposit ?

 

3  What are the advantages of keeping cash ?

 

4  What are the disadvantages of keeping cash ?

 

5  What does a share of stock represent ?

 

6 Explain the difference between a growth stock and an income stock

 

7  What are the advantages of buying stocks ? The disadvantages ?

 

8  What are you buying when you invest in a mutual fund ?

 

9 What is the difference between a no load and a load fund ?

 

10  Describe the advantages and disadvantages of mutual funds

 

11  What is a bond ?  What are you getting when you buy a bond ?