INTRODUCTION TO INVESTING-Infographic
Search this infographic and click on the correct responses.
SAVING | INVESTING | TRADING | |
|---|---|---|---|
It is meant for short-term goals | |||
It involves assets like stocks and bonds | |||
It harnesses compound interest and higher average returns to grow your wealth faster | |||
It involves very little risk | |||
Your account balance will be impacted by the market | |||
It is often used for long-term financial growth | |||
It typically offers lower but stable returns | |||
It requires frequent buying and selling of assets | |||
It may involve day trading or short-term profit strategies | |||
It is generally protected by FDIC insurance | |||
It is influenced by interest rates set by banks | |||
It is commonly used to build retirement funds | |||
It carries the highest level of risk but also potential for quick gains |
Many people think of the stereotypical Wall Street stock trader when they think of investing. However, this image does not reflect the everyday investor.
Watch this video and read the table to learn about the difference between trading and investing. Then, clik the correct boxes. Some apply to more than one.