Question

1. what does it mean to have an

using a variety of sources to do research on what stocks to buy
making sure that your investments are different from those of your friends and family
investing in different assets to spread out the risk to different markets
never buying the same stock more than once

1. what is a dividend? *

a dividend is a payment a company makes periodically to owners of its stock
a dividend is the difference between the purchase price and selling price of a stock
a dividend is the tax you pay in order to buy and sell stocks
a dividend is a payment you make to keep a stock on loan from a company

1. which of the following is true about investing? *

it is meant for short - term needs like your emergency fund, not saving for retirement
it guarantees a high rate of return over a short period of time
it can help you grow your money through the power of compounding
it involves little risk because your returns are insured up to $250,000

Explanation:

1. This describes the core concept of diversification in investing, which is spreading investments across assets to reduce risk.
2. Dividends are regular profit distributions from a company to its shareholders (stock owners).
3. Compounding allows investment returns to generate additional returns over time, which is a key benefit of long-term investing; the other options are incorrect as investing is for long-term goals, does not guarantee high short-term returns, and is not insured like bank deposits.

Answer:

1. Investing in different assets to spread out the risk to different markets
2. A dividend is a payment a company makes periodically to owners of its stock
3. It can help you grow your money through the power of compounding