How Much Do You Know About Investing?
  • 1
    You can start investing with as much money as it would take you to buy a coffee.
  • 2
    Your age and how much you have in savings alone determines how much risk you should take on.
  • 3
    Focusing on one specific investment type often has less risk than making various different kinds of investments.
  • 4
    Active funds generally perform better than passive funds because there are experienced professionals making investment decisions.
  • 5
    It's important for you to closely monitor market movements so that you can accurately time your investments to maximize your return.
  • 6
    During stock market crashes the best thing you can do is liquidate your portfolio and move to lower risk savings products.
  • 7
    Alternative investments (like cryptocurrency) or stock picking are really risky so should be avoided.
  • 8
    Company specific risk can be reduced through diversification, but market risk is something investors have to live with.
  • 9
    Companies that are expected to experience high growth are riskier than established companies with stable growth.
  • 10
    Stock picking is difficult, but if you put enough research in you have a good chance of winning it big.
  • 11
    A bond is the financial instrument that an investor receives when they lend money to a company or government.
  • 12
    Stock prices represent the total value of a company allocated between all of the shareholders once the company's debts are paid off.
  • 13
    You should always look at the financial statements and annual reports of companies that you are investing in.
  • 14
    Dividends are periodic cash payments company's pay to their shareholders.
  • 15
    Professional investors on Wall Street make most of their money because they are exceptionally talented at researching how stocks will perform in the future.