Investments during One Year What does the information demonstrate about Gale’s investments? … If she had diversified her investments further, her profits would have been considerably larger. If she had put money in her savings account only and had not diversified, her profits would grow.
What does the information demonstrate about Gale’s investments?
What does the information demonstrate about Gale’s investments? If she had purchased only the stock and had not diversified her investments, she would have lost money. the commodity’s price will go up after purchase.
How easily an investment can be exchanged for cash is known as?
How easily an investment can be exchanged for cash is known as diversification.
In what way does a 401 K differ from an individual retirement account?
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?
What might convince an investor to buy?
a belief that a company has just reached its peak popularity. b news that a stock’s price has recently increased significantly. c belief that a small number of investors have bought the stock so far.
Which is an example of a high risk investment?
Other examples include cryptocurrencies, foreign exchange, ETFs, Venture Capital, Angel investing, Spread betting, etc.
Which best describes what generally occurs in financial markets?
Which best describes what generally occurs in financial markets? … Markets regulate transactions. How do bonds generate income for investors? Bonds pay a specified amount at maturity.
Which two factors have the greatest influence on risk for an investment?
Which two factors have the greatest influence on risk for an investment? The duration of the investment.
Which asset in the following list is the most liquid?
Cash on hand is the most liquid type of asset, followed by funds you can withdraw from your bank accounts. No conversion is necessary—if your business needs a cash infusion, you can access your funds right away.
Is a car a liquid asset?
A liquid asset is either available cash or an instrument that has the capacity to be easily converted to cash. … Liquid assets differ from non-liquid assets, such as property, vehicles or jewelry, which can take longer to sell and therefore convert to cash, and may lose value in the sale.
Can I have a 401K and an IRA?
The quick answer is yes, you can have both a 401(k) and an individual retirement account (IRA) at the same time. … These plans share similarities in that they offer the opportunity for tax-deferred savings (or, in the case of the Roth 401k or Roth IRA, tax-free earnings).
Which is the best retirement plan?
The 9 best retirement plans
- Defined contribution plans.
- IRA plans.
- Solo 401(k) plan.
- Traditional pensions.
- Guaranteed income annuities (GIAs)
- The Federal Thrift Savings Plan.
- Cash-balance plans.
- Cash-value life insurance plan.
In what way does a 401 K differ from an individual retirement account IRA )? A 401 K is created through an individual’s employer a 401 K can be created by individuals who deposit money a 401K allows consumers to contribute before taxes a 401 K is a good?
The main difference is that a 401(k) is an employer-sponsored account, so you can only participate in one if your job offers it as a benefit. Also, your company decides which investments are available, meaning you have limited control over what you can invest in and how much you pay in investment costs.
How do investors make money from bonds?
There are two ways to make money by investing in bonds. The first is to hold those bonds until their maturity date and collect interest payments on them. Bond interest is usually paid twice a year. The second way to profit from bonds is to sell them at a price that’s higher than what you pay initially.
Which is an example of a short term investment?
Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.
Which statement best describes how an investor makes money off debt?
Which statement best describes how an investor makes money off debt? An investor makes money by issuing bonds.