Investing Basics Quiz
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Questions and Answers

What is investing?

  • Putting money into assets to make it grow over time (correct)
  • Buying toys and stickers
  • Saving money for the future
  • Hiding money under the mattress

Stocks represent:

  • Ownership in a company (correct)
  • Money in a savings account
  • Shares in a mutual fund
  • Loans to governments

What is diversification in investing?

  • Buying only real estate
  • Putting all money into one company
  • Spreading investments across different companies and industries (correct)
  • Investing in a single industry

What is a market order in stock trading?

<p>Buying or selling stocks at the current market price (C)</p> Signup and view all the answers

When using a limit order, investors:

<p>Set a specific price at which to buy or sell stocks (C)</p> Signup and view all the answers

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