ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -When you hear the word “investing, ” you probably think about stocks, bonds, maybe commodities. When you hear the word “investing, ” you probably think about stocks, bonds, maybe commodities. It’s far less likely that your reflex will be inward – but indeed, you can, and should, invest in yourself, too.
Detailed explanation-2: -Diversification is one of the most fundamental rules of investing and allows you to take a middle road through the extremes of market performance, allowing your investment to grow regularly with smaller fluctuations along the way. Diversification is the most effective means of managing risk.
Detailed explanation-3: -Have a Financial Plan. Make Saving a Priority. Understand the Power of Compounding. Understand Risk. Understand Diversification and Asset Allocation. Keep Costs Low. Understand Classic Investment Strategies. Be Disciplined. More items
Detailed explanation-4: -Research the Company: Find Out What They Do. Look at the Company’s Price-to-Earnings Ratio. Estimate a Company’s Risk by Its Beta. Examine the Company’s Dividend History & Yield. Learn to Read Stock Charts and Identify Trends. Buy Stocks for the Long Run.