Stocks and Bonds Quiz

Stocks are small pieces of ownership in a company, while bonds are loans made to the issuer.

Stocks can offer strong return potential to investors.

Stocks are considered riskier because their volatility can be extreme and they are sensitive to economic data, earnings reports, and geopolitical events.

<p>While stocks represent ownership in a company, bonds do not offer ownership, but rather provide a specified rate of interest or coupon payment to investors.</p> Signup and view all the answers

<p>Corporations, the federal government, municipalities, and other issuers sell bonds to raise money for various purposes.</p> Signup and view all the answers

<p>Your savings goal, what type of retirement account to open, and how to manage the money in your account.</p> Signup and view all the answers

<p>To determine when you're going to retire and how much money you'll need to live comfortably.</p> Signup and view all the answers

<p>By using a retirement calculator.</p> Signup and view all the answers

<p>It helps you figure out how much you need to save each month and how to allocate your investments.</p> Signup and view all the answers

<p>To have enough money to cover expenses and to have some left over for fun stuff.</p> Signup and view all the answers